Dry expects a 10% decrease in revenue on a comparable basis in the first quarter of 2024 compared to the same period last fiscal year. The French giant has just published a preliminary note on the Q1 results which will be released on April 23rd.
“This performance – declares the family group Pinault – mainly reflects a steeper decline in sales of Gucci, particularly in the Asia-Pacific region. Gucci’s first-quarter comparable revenue is expected to decline nearly 20% year over year.”
The first products, mainly ready to wear, are the result of the new stylistic course entrusted to the creative direction of Saturday De Sarno, have arrived in selected single-brand stores since mid-February. The ‘Ancora’ collection, whose availability will gradually increase in the coming months, “is meeting a very favorable reception”.
“The reported revenues will include the positive contribution of the consolidation of Creed on a quarterly basis as well as a negative impact on exchange rates. The combined effect of these two elements is estimated between -1 and -2 percent,” the document concludes.
Kering, which closed 2023 with a general decline in sales of its brands (with the exception of eyewear). In particular, turnover for the entire year recorded a decline of 4% (2% on a comparable basis) to 19.6 billion euros. In the fourth quarter alone, the contraction in revenues was 6% at a reported level and 4% on a comparable basis to 4.97 billion euros. Direct sales (including e-commerce) remained unchanged, indirect sales (wholesale), equal to 22% of total sales, decreased by 11 percent. Recurring operating profit fell by 15% to 4.7 billion, recurring operating profit fell by 15% to 4.7 billion for a revenue margin that fell to 24.3% from 27.5% in 2022. Group recurring net profit fell 18% to 3.061 billion euros.
In addition to Gucci, the portfolio of fashion brands also includes Saint Laurent, Bottega Veneta, Alexander McQueen, Balenciaga e Brioni to which they are added Dry Eyewear, Kering Beauty e Ginori 1735. The jewelry section includes Pomellato, Boucheron, Dodo e Definition.