What: Kering reports 12% Q4 revenue decline amid continued Gucci challenges, while CEO sees signs of stabilisation despite varying brand performance across portfolio.

Why it is important: The varying performance across brands reveals how different luxury segments are responding to changing consumer preferences and market conditions, particularly in key regions like China.

Kering's Q4 2024 results show revenue falling 12% to €4.39 billion, beating analyst expectations of a 15% decline but reflecting ongoing challenges across its brand portfolio. Gucci, the group's flagship brand, disappointed with a 24% organic revenue drop, while Saint Laurent declined 8%. Bottega Veneta emerged as a bright spot with 12% growth, despite facing its own leadership transition. The group's recurring operating profit for the full year fell 46% to €2.55 billion, with margins declining from 24.3% to 14.9%. CEO François-Henri Pinault emphasised the group's efforts to accelerate brand transformation and strengthen desirability, expressing confidence in reaching a stabilisation point. The results come amid broader industry changes, with competitors showing varied performance: LVMH's fashion division declined 1% while Richemont reported 10% growth.

IADS Notes: Kering's Q4 2024 results, with a 12% revenue decline and particularly challenging Gucci performance (-24%), reflect the culmination of broader market pressures identified earlier in the year. This aligns with October 2024's implementation of significant austerity measures following missed forecasts, especially in key markets like China and Japan. The divergent performance across the portfolio, from Gucci's decline to Bottega Veneta's 12% growth, demonstrates how luxury groups are navigating what December 2024 data identified as the first significant market downturn since the Great Recession. The results particularly highlight how Chinese market dynamics have evolved, with March 2024 showing increased "luxury fatigue" and preference for more discreet consumption, impacting different brands within the portfolio to varying degrees.

Kering Group revenue falls 12% in Q4