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It is increasingly clear that there is so much uncertainty surrounding the luxury sector (and not only that, obviously). One clue above all: Moncler ended up losing 3.5% (and then closing at -1.04%) after the announcement – otherwise predictable – of the sale of part of its share by Carlo Rivetti. Announcement arrived before the opening of the Milan Stock Exchange. However, while the Paris stock exchange was closed, the announcement came from Kering, the second largest luxury group in the world after LVMH.
Turnover for the January-March period expected at -10%
In a terse note, Kering communicated a forecast of a drop in sales of “around 10%” in the first quarter of 2024, weighed down in particular by the difficulties of the flagship brand, Gucci, which could lose 20%, especially due to sales performance in the Asia-Pacific area (above, a photo of the recent Gucci fashion show at Milan Fashion Week in February). The data for the January-March period were expected in the financial calendar of the group led by François-Henri Pinault for April 23rd and it will be necessary to see how the market, at the opening of trading tomorrow, Wednesday 20th March, will react to a similar “sales warning ”, very unusual.
Gucci’s relaunch will have to wait, it seems
The Italian fashion house remains the “big patient” of the group, but also the most important brand (among them there are Saint-Laurent, Bottega Veneta, Brioni and Pomellato). The note explains that the products from the Ancora collection – designed by the creative director Sabato Di Sarno, on whom the responsibility for the relaunch “falls” – have been on offer in selected Gucci stores «since mid-February and that «availability will gradually increase in the coming months ». In 2023 Kering also made changes to the management of Gucci, placing at its helm one of François-Henri Pinault’s closest collaborators, Jean-François Palus, deputy CEO of Kering. «Our priority is to put Gucci back on track – Pinault reiterated in February – «but this won’t happen overnight».
Currency effect
The note, which Bernstein defined as an “adverse trading warning”, also speaks of a “combined effect on the turnover of the positive contribution linked to the consolidation of Creed (British perfumery brand acquired in October for 3.5 billion euros, ed.) and of the negative impact of exchange rates, estimated in the order of -1/-2%”.