Kering reported a 12 per cent drop in 2024 revenue, totaling €17.2 billion, as challenging market conditions hit luxury demand. Recurring operating income fell 46 per cent to €2.6 billion, while net income attributable to the Group was €1.1 billion.
Gucci, Kering’s flagship brand, saw revenue tumble 23 per cent to €7.7 billion, with direct retail sales down 21 per cent and wholesale plunging 28 per cent. However, the performance of its leather goods, particularly the Jackie handbag, showed signs of resilience.
Yves Saint Laurent’s revenue declined 9 per cent to €2.9 billion, impacted by a 7 per cent drop in direct retail sales and a 25 per cent dip in wholesale. Meanwhile, Bottega Veneta bucked the trend, growing 4 per cent to €1.7 billion, with direct sales up 10 per cent.
Revenue from Kering’s Other Houses, including Balenciaga, Alexander McQueen, and Boucheron, fell 8 per cent to €3.2 billion. Balenciaga’s leather goods performed well, while Alexander McQueen struggled amid its transition.
Kering Eyewear and Corporate revenue rose 24 per cent to €1.9 billion, driven by Kering Beaute and a strong performance in eyewear, which marked its 10th anniversary.
In Q4 2024, revenue mirrored the annual trend, dropping 12 per cent, with direct retail sales down 13 per cent and wholesale revenue down 10 per cent. Japan was the only region where trends did not improve.
Free cash flow from operations reached €1.4 billion, but excluding real estate transactions, it was €3.6 billion, up 7 per cent from 2023. Net debt stood at €10.5 billion.
Kering proposed a €6 per share dividend, with a final payout of €4 scheduled for May 7, 2025.
Looking ahead, Kering aims to enhance brand desirability, optimize distribution, and drive efficiency while maintaining financial discipline. The Group remains cautious amid economic and geopolitical uncertainties but is focused on a return to growth.
