Kering on Wednesday shared its half-year financial results, revealing that its revenues fell 11% in the six months ending June 30.
The group's sales decline can largely be attributed to poor performance at Gucci, which accounts for roughly half of the group's sales and two-thirds of its profit. The brand's revenues were down 20% (or 18% on a currency-adjusted basis) at €4.09 billion EUR. Kering has attempted to revamp the label over the last year, with the appointment of CEO Jean-François Palus and creative director Sabato de Sarno, whose more minimal design aesthetic has struggled to increase consumer demand amid a luxury slowdown.
Saint Laurent, meanwhile, saw revenues fall by 9% (or 7% on a currency-adjusted basis) to €1.4 billion EUR, and the conglomerate's "Other Houses" division, which primarily includes Balenciaga and Alexander McQueen, was down 7% (or 6% on a currency-adjusted basis) to €1.7 billion EUR. Bottega Veneta's revenues were flat when compared to the same period last year.
Kering experienced a significant decrease in Asia-Pacific during the first half of this year. In the region, excluding Japan, the group's revenues were down 22% at €2.9 billion EUR. In Western Europe, the company's sales decreased by 7% to reach €2.55 billion EUR, and in North America, revenues fell by 9% to hit €2.1 billion EUR. Japan's sales, however, increased by 8% "mainly because of price differentials."
"Considering the uncertainties weighing on the evolution of demand from luxury consumers in the coming months following the slowdown recorded in the first half of 2024, Kering’s recurring operating income in the second half of 2024 could be down by approximately 30% compared to the second half of 2023," Kering concluded.
See Kering's full financial report here.
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