Kering profits tumble in ‘trying year’ (2024)

Full year net profit for the luxury group fell from €3.6bn (£3bn) for the year ended 31 December 2022 to €2.98bn (£2.54bn) in its latest full-year earnings.

Full year revenue saw a 4% year-on-year decline to €19.56bn (£16.7bn), with an 11% drop in wholesale revenue, which Kering attributed to a strengthened focus on DTC sales.

Fourth quarter revenue for the 12 weeks ended 31 December 2023 dropped by 6% on the same period in 2022, as western European and North American consumers tightened their wallets due to the cost of living crisis.

Kering chairman and CEO François-Henri Pinault described 2023 as a“trying year for the group”.

"We strengthened our organization and took significant steps to further enhance the visibility and exclusivity of our [fashion] houses. We are focused on revitalizing Gucci, leveraging the unique blend of craftsmanship, Italian heritage, and modernity that characterizes this iconic house.

“In a market environment that remains uncertain in early 2024, our continuing investments in our houses will put pressure on our results in the short term.

“Thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long term ambitions.”