“In a difficult year, we accelerated the transformation of several of our Houses and moved determinedly to strengthen the health and desirability of our brands for the long term. Across the Group, and at Gucci first and foremost, we made critical decisions to raise the impact of our communications, sharpen our product strategies, and heighten the quality of our distribution, all in the respect of the creative heritage that distinguishes our brands. We secured our organization, made key hirings, sped up execution, and intensified the efficiency of our operations”, commented François-Henri Pinault, Chairman and Chief Executive Officer.

Full Year Results

Kering’s revenue for the full year 2024 was 17.2 billion euros. This represents a decrease of 12% on a reported and comparable basis, as compared to the previous year. On a comparable basis, retail sales, including e-commerce, fell by 13% due to lower store traffic, and wholesale revenue fell by 22%, as brands focused on exclusivity; at the group level, wholesale and other revenue declined by 9%.

In the fourth quarter alone, the company’s revenue was also down by 12% year-over-year on a reported and comparable basis. Kering noted that “trends improved sequentially in all regions, except Japan”.

Looking at the major Houses. Gucci’s 2024 revenue declined by 23% on a reported basis and 21% on a comparable basis to 7.7 billion euros, Yves Saint Laurent’s revenue declined by 9% on a reported basis and 9% on a comparable basis to 2.9 billion euros, and Bottega Veneta’s revenue declined by 4% on a reported basis and 6% on a comparable basis to 1.7 billion euros, as compared to the year 2023.

The group’s recurring operating income totalled 2.6 billion euros in 2024, down by 46% year-on-year, as recurring operating margin fell from 24.2% to 14.9%. Net income attributable to the group was 1.1 billion euros last year, down from 2.98 billion euros in 2023.

Sabato De Sarno Exits

Shortly before releasing its full year results, Gucci announced that it had ended its collaboration with creative director Sabato de Sarno, who joined the house in 2023. “I would like to express my deep gratitude to Sabato for his passion and dedication to Gucci. I sincerely appreciate how he honoured Gucci’s craftsmanship and heritage with such commitment”, Stefano Cantino, CEO of Gucci. 

Despite some sequential improvements in North America and Asia Pacific in the fourth quarter and the encouraging performance of the new leather goods lines as well as the iconic Gucci lines, Kering’s main House continues to struggle.