Gucci Sales Fall 4% in Q4 2023, Kering's Total Revenues Continue to Weaken

The multinational luxury conglomerate saw sales decline by 6% in the fourth quarter of last year.

Fashion
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Kering Group on Thursday reported its financial results for the fourth quarter of 2023, revealing a slight fall in revenues across the board. At Gucci, the conglomerate’s top-performing brand, sales were down 4%, landing on the lower side of analysts’ expectations.

The figure does not represent sales for the Italian fashion house’s new creative director Sabato de Sarno; his designs will be sold in stores this spring. Still, Kering chairman and CEO François-Henri Pinault said in a statement that the company was “focused on revitalizing Gucci,” a brand which composed 68% of the group’s total operating profits in 2023.

Across the board, the French luxury group said that its sales declined by 6% at reported exchange rates to reach €4.97 billion EUR (or 4% on an underlying basis) in the three-month period ending December 31. The figure did, however, surpass market expectations, which had forecasted an 8% fall in reported sales.

The falling numbers come during an industry-wide slowdown that has affected a plethora of luxury brands. The company noted positive revenue growth in Asia-Pacific and Japan; but as high-end shoppers continue to slow down on their spending, the company does expect to see positive operating income in the first half of 2024 — especially as it continues to invest in its flagship brands.

Notably, the fourth quarter’s negative results still marked an improvement from the previous period, which saw sales decline by 13% at reported exchange rates to reached €4.46 billion EUR (0r 9% on an underlying basis).

Across 2023, Kering reported an 18% decline in net profits, which tallied to €3.06 billion EUR. See the group’s full financial report here.

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