Gucci owner Kering Weakening demand for its luxury fashion continues to cause problems. Last year, the group's sales fell by four percent to 19.6 billion euros, as the company announced in Paris with brands such as Yves Saint Laurent and Bottega Veneta.
Profits fell even more sharply: by 17 percent to almost three billion euros. “We are focused on revitalizing Gucci,” said Kering CEO Francois-Henri Pinault, calling 2023 a “difficult year.”
Gucci is the most attractive individual brand of the group
Luxury brand Gucci, with its fine clothing and accessories, accounts for about half of Kering's sales and contributes about two-thirds of the group's operating profit. However, last year Gucci's sales fell even more than at the group level.
The division's operating profit fell 13 percent. Things also went downhill at Yves Saint Laurent and Bottega Veneta. Only in the eyewear business did sales and operating profits increase significantly.
Gucci's recovery causes its profits to fall
Kering wants to get Gucci out of the crisis, and that initially costs money. Therefore, CEO Pinault predicted a further decline in operating profit for the current year. In 2023, profits fell 15 percent to €4.75 billion on a comparable basis, even more than analysts expected on average.
Other major luxury goods manufacturers, however, reported growth: French group LVMH achieved another record year in 2023 with brands such as Louis Vuitton and Christian Dior.
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