Kering has reported a 12% decline in revenue, totaling €17.2 billion in 2024. The luxury conglomerate, home to iconic brands such as Gucci, Yves Saint Laurent, and Bottega Veneta, faced declining store traffic and wholesale adjustments, impacting its overall financial performance.
Financial Performance Overview
- Revenue: €17.2 billion (down 12%)
- Recurring Operating Income: €2.6 billion (a 46% decline from 2023)
- Net Income Attributable to the Group: €1.1 billion.
- Free Cash Flow from Operations: €1.4 billion; excluding real estate transactions, it reached €3.6 billion, a 7% increase from 2023.
- Proposed Dividend: €6 per share, with an interim dividend of €2 already distributed in January 2025.
“We accelerated the transformation of several of our Houses and made critical decisions to enhance our brand desirability and operational efficiency.”
François-Henri Pinault, Chairman and CEO of Kering
Gucci, Kering’s flagship brand, experienced a 23% drop in revenue, amounting to €7.7 billion. Sales from the directly operated retail network, which contributes 91% of Gucci’s total revenue, declined by 21%. Wholesale revenue also took a significant hit, decreasing 28%.
Despite these setbacks, the brand saw positive traction in its iconic products, including the Jackie handbag and its new interpretations. The recurring operating income for Gucci stood at €1.6 billion, with an operating margin of 21%.
Yves Saint Laurent reported €2.9 billion in revenue, marking a 9% decline. While retail network sales dropped 7%, the brand recorded improvements in North America and Asia-Pacific.
New Leather Goods collections and reinterpretations of classic handbags were particularly well received. However, wholesale revenue declined 25%.
The brand maintained a recurring operating income of €593 million, with a 20.6% operating margin, showcasing the resilience of its strategic investments.
Unlike its peers, Bottega Veneta posted a revenue increase of 4%, totaling €1.7 billion. The brand’s directly operated retail network saw a 10% boost, with standout performances in North America and Western Europe.
Wholesale revenue, however, declined 15%, as the House pursued a highly selective approach to partnerships. The brand reported a recurring operating income of €255 million, with an operating margin of 14.9%.
Kering’s net financial expense reached €614 million, with a tax rate of 27.1% on recurring income. The Group’s net debt stood at €10.5 billion as of December 31, 2024.
