The Kering Group reported a 15% decline in revenue in the third quarter of 2024, amounting to €3.8 billion, as the luxury sector navigates difficult global market conditions.
Kering is a prominent global luxury group managing a portfolio of renowned fashion, leather goods, and jewelry houses, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and others. In 2023, the Group employed 49,000 people and generated €19.6 billion in revenue.
| Segment | Revenue (Q3 2024) | Change (Reported) |
|---|---|---|
| Kering Group Total | €3.8 billion | -15% |
| First Nine Months (2024) | €12.8 billion | -12% |
| Gucci | €1.6 billion | -26% |
| Yves Saint Laurent | €670 million | -13% |
| Bottega Veneta | €397 million | +4% |
| Other Houses (Balenciaga, Alexander McQueen & Brioni) | €686 million | -15% |
| Kering Eyewear and Corporate | €440 million | +32% |
The decrease includes a 1% negative currency effect and a 2% positive impact from the consolidation of Creed. François-Henri Pinault, Kering’s Chairman and CEO, emphasized the Group’s focus on sustainable growth and rigorous cost management as key priorities during this period of transformation, particularly for Gucci.
Kering’s flagship brand, Gucci, recorded revenue of €1.6 billion in Q3, down by 26% as reported and 25% on a comparable basis. Direct retail sales were particularly impacted, dropping by 25% due to weakened demand, notably in Asia-Pacific.
The luxury brand is undergoing a strategic overhaul, including a major reorganization of its leather goods category with new product introductions aimed at revitalizing sales.
Additionally, wholesale revenue for Gucci fell sharply by 38% due to a strategic reduction in its distribution channels amid challenging market dynamics.
Yves Saint Laurent also faced headwinds, with a 13% drop in revenue to €670 million. Direct retail sales fell by 12%, despite the brand’s ongoing efforts to diversify its leather goods offerings.
On the wholesale front, revenue was down by 20%. Yves Saint Laurent plans to launch new products in the coming months to attract a wider audience.
In contrast, Bottega Veneta showed resilience, reporting a 4% increase in revenue, reaching €397 million. This growth was fueled by a 9% rise in direct retail sales, with notable success in North America and Western Europe.
Bottega Veneta’s leather goods range continues to drive the brand’s positive performance, supported by strong consumer reception to its recent fashion show. However, wholesale revenue declined by 10%, reflecting a mixed market response.
Kering’s Other Houses segment, which includes brands such as Balenciaga, Alexander McQueen, and Brioni, reported a 15% decrease in revenue, totaling €686 million. Direct retail sales in this segment declined by 10%, impacted by uncertain market conditions.
Despite this, Balenciaga’s leather goods line performed well, while Alexander McQueen’s latest collection received enthusiastic reception.
Kering Eyewear and Corporate revenue, meanwhile, increased by 32% to €440 million.
With cumulative revenue for the first nine months of 2024 at €12.8 billion, a 12% decrease, Kering’s projections for the remainder of the year are cautious.
The company forecasts recurring operating income of approximately €2.5 billion, emphasizing its commitment to disciplined cost control and strategic investments that support long-term growth.
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