Kering: sharp downturn in 1st quarter sales

(CercleFinance.com) - The Kering Group has published sales of ME4504 for the 1st quarter of 2024, down 11% on a reported basis (and -10% on a like-for-like basis, i.
e. on a constant consolidation scope and exchange rate basis) compared with the same period a year earlier.

In detail, and on a like-for-like basis, Gucci posted an 18% decline, to ME2079, behind YSL, which fell by 6% to ME740. By contrast, Bottega Veneta was up 2% to MEUR 388, and Kering Eyewear and Corporate was up 9% to MEUR 536.

Lastly, sales by Other Houses fell by 6%, to ME824.

Kering's performance deteriorated sharply in the first quarter. While we had anticipated a difficult start to the year, market conditions, particularly in China, and the strategic repositioning of some of our Houses, starting with Gucci, have increased the pressure on our sales", analyses François-Henri Pinault, Chairman and CEO.

Against this backdrop, Kering confirms its strategy of investing in the development of its Houses, "so that they constantly reinforce their desirability and the exclusivity of their distribution".

For 2024, Kering acknowledges that this strategy will weigh on the Group's recurring operating income: the latter is expected to be down on the level published in 2023, particularly in the first half of the year.

Given the deterioration in sales trends, the Group now anticipates a decline in its recurring operating income for the first half of 2024 of between 40% and 45% compared with the first half of 2023.

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