Kering's first quarter 2024 revenue plummets 11%

Kering has announced results for the first quarter of fiscal 2024. The luxury group's group revenue (reported) fell 11% year-on-year to €4.504 billion.

Gucci's performance was the main culprit, with the brand's revenue falling 21%. However, Yves Saint Laurent and Bottega Veneta were not spared, falling 8% and 2% respectively.

Kering attributed the drop in revenue to "a backdrop of normalization in the luxury sector" and to the transformation underway within the group.

François-Henri Pinault, Chairman and CEO explains: "Kering Group's first-quarter performance deteriorated significantly. While we expect a challenging start to the year, subdued market conditions, particularly in China, and the strategic repositioning of certain brands, led by Gucci, have exacerbated downward pressure on our revenues. Given the revenue decline, combined with our strong determination to continue to selectively invest in the long-term appeal and distinctiveness of our brands, we now expect operating profit to be significantly lower in the first half of the year. We are all working tirelessly to help Kering cope with the current challenges and rebuild a solid platform for lasting growth."