While Kering had better-than-expected sales to end 2024, it still doesn't spell out good news for the luxury conglomerate.
Amid an overall luxury slowdown , the high-end behemoth netted $4.52 billion (4.39 billion euros) in last year's fourth quarter, which was just slightly above the London Stock Exchange Group's earnings estimate of $4.4 billion (4.29 billion euros) for the company. The 2024 figure marks 12 percent drop in sales from the previous year for Kering, CNBC reported . The conglomerate owns luxury labels such as Balenciaga, Saint Laurent, and Gucci.
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As for the Italian maison , it didn't finish the year off strong, either. Gucci posted sales of $1.92 billion in the fourth quarter, a drop of 24 percent compared to last year's numbers. The label's profits accounts for nearly 50 percent of Kering's total revenue, according to CNBC. Overall, the luxury conglomerate said it improved its sales in Asia Pacific and North America within the Gucci, Saint Laurent, and Bottega Veneta labels, but Kering did not dive into specifics on its markets, the outlet reported.
"In a difficult year, we accelerated the transformation of several of our houses and moved determinedly to strengthen the health and desirability of our brands for the long term," chairman and CEO Francois-Henri Pinault said in a statement.
Part of that transformation includes leadership changes: Gucci's creative director Sabato de Sarno is leaving the luxury house after two years at the label, CNBC reported. De Sarno had originally replaced Alessandro Michele in the role, and a successor has not been named at time of publication.
Last year's luxury downturn trickled into all parts of the high-end sector, due in part to economic uncertainty around the globe, the rise of geopolitical conflicts, and the decline of luxury shopping in Asian markets. As a result, Pinault as well as LVMH leader Bernard Arnault and L'Oréal exec Françoise Bettencourt Meyers lost a combined $70 billion in 2024.
LMVH also reported better-than-expected sales at the end last year, generating $88.27 billion (84.68 billion euros) in revenue. While the showing is a good sign for the luxury bellwether, continued struggles in the Chinese market have caused sales in the firm's fashion and leather goods department to slump for the first time since the pandemic.
Luxury spending could be on the rebound in 2025, though, as consumers reach for their wallets while on vacation abroad . Stay tuned.
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