Kering in deep crisis as Gucci sales fall 24 %

The last quarter of 2024 was even worse than expected for Gucci, as its sales dropped by a quarter. As a result, its owner Kering saw its annual sales fall 12 % last year. There is, however, one beacon of hope for the French luxury giant.

Expensive mistake

With a sales drop of 24 %, Gucci’s last three months of 2024 were (even) worse than what analysts had estimated. During the first nine months of 2024, the brand’s sales had already fallen by 20 %. Gucci sent its creative director Sabato De Sarno packing last week, as his choice to go for a more discreet ‘quiet luxury’ style turned out to be an expensive mistake. A successor has not yet been found.

Due to Gucci’s poor results, Kering’s group sales fell 12 % to 17.2 billion euros last year. Its operating margin shrank from 24.2 % in 2023 to 14.9 % in 2024. Sales at Yves Saint Laurent were down 9 %, a consequence of the decision to opt for more exclusive distribution. There was one small bright spot: Bottega Veneta was able to grow 4 % thanks to good performances in North America and Western Europe.