Kering Reports Mixed 2024 Results Amidst Gucci Slowdown
Paris, France – Kering, the prominent French luxury conglomerate renowned for its portfolio of iconic houses, officially announced its full-year 2024 financial results on February 24, 2025. The report presented a complex picture, showing overall revenue growth for the group while simultaneously highlighting a notable deceleration in the performance of its flagship brand, Gucci. This divergence in trajectory between the group’s consolidated results and the performance of its largest asset has become a central point of scrutiny for market observers and industry analysts.
The group’s announcement detailed the financial outcomes of a year characterized by varying dynamics across different luxury segments and geographical regions. While Kering reported an increase in overall revenue for the full 2024 fiscal year, signalling resilience in certain parts of its extensive portfolio, the performance was not uniform. The strength demonstrated by some of its luxury houses helped to underpin the group’s top-line figure, providing a degree of insulation against softness experienced elsewhere. However, the sheer scale and significance of Gucci within the Kering structure meant that any significant challenge at the Italian powerhouse would inevitably have a material impact on the group’s aggregate results.
Gucci’s Performance Under the Microscope
The focal point of the financial disclosure and subsequent analyst discussions was the performance of Gucci. The brand, which consistently represents over half of Kering’s total sales, experienced a significant slowdown in its growth trajectory during 2024. This dip in performance at such a crucial brand is a primary reason why the overall group results, despite showing some growth, were described as ‘mixed.’ The slowdown signals that the brand faced considerable challenges in maintaining its prior momentum in a luxury market that is continually evolving and facing shifting consumer demands.
Industry analysts, commenting on the results, were quick to pinpoint key factors contributing to Gucci’s struggles in the past year. Prominent among these cited issues were challenges specific to the North American market. This crucial region, a significant driver of luxury sales globally, presented a more challenging operating environment for Gucci, potentially influenced by macroeconomic conditions, changing consumer spending habits, or increased competitive intensity. The specific nature of these challenges in North America was highlighted as a material headwind for the brand’s overall global performance.
Furthermore, analysts and market watchers also pointed to the impact of leadership changes at Gucci on the brand’s recent performance. Transitions in key creative and executive roles within a major luxury house can often lead to periods of adjustment. These changes can affect strategic direction, creative output, and operational execution in the short to medium term as new visions are implemented and teams adapt. While such changes are often necessary for long-term revitalisation, their immediate impact can include temporary disruptions that weigh on sales figures and market perception. The timing and scope of the leadership transitions at Gucci during the period were therefore viewed as a contributing factor to the slowdown observed in the 2024 results.
Navigating Headwinds and Plotting a Turnaround
Recognizing the imperative to address the performance challenges at its largest brand, Kering outlined clear strategies aimed at revitalizing Gucci. The company articulated a multi-pronged approach designed to re-energize the brand and restore its growth momentum. A key element of this strategy involves focusing heavily on new product launches. This entails introducing fresh collections, innovative designs, and potentially exploring new product categories or collaborations intended to generate excitement, attract new customers, and re-engage existing clientele. The emphasis on newness is a standard yet critical lever in the luxury industry to maintain brand desirability and relevance.
Alongside product innovation, Kering detailed plans for targeted marketing campaigns throughout 2025. These campaigns are expected to be strategically focused, likely leveraging digital platforms and experiential retail to connect with specific customer segments and geographies where the brand sees the greatest opportunity or needs to rebuild strength. The intent is to enhance brand messaging, reinforce its unique positioning, and drive consumer engagement that translates into increased foot traffic and sales, both online and in physical stores. The focus on ‘targeted’ marketing suggests a more data-driven and precise approach to reaching the desired consumer base.
The company’s communication underscored a commitment to investing in Gucci’s future, leveraging the brand’s inherent strength and heritage to navigate the current challenges. The strategies outlined for throughout 2025 indicate that the turnaround is viewed as a process that will unfold over the coming year, requiring sustained effort and execution across creative, commercial, and operational fronts. Kering’s management expressed confidence in the brand’s long-term potential and the effectiveness of the strategic imperatives being implemented to address the current headwinds.
Outlook for 2025
Looking ahead, 2025 is poised to be a pivotal year for Kering, particularly regarding the execution of the Gucci turnaround plan. The success of the new product launches and the impact of the targeted marketing campaigns will be closely watched by the market. While other brands within the Kering portfolio, such as Saint Laurent, Bottega Veneta, and the ‘Other Houses’ division, will continue to contribute to the group’s overall performance, the recovery and revitalization of Gucci remain the most significant variable influencing Kering’s near-term outlook. The company acknowledged the challenging operating environment but reiterated its focus on strategic execution to deliver improved performance moving forward. Investors and analysts will be monitoring future quarterly reports for signs that these strategies are beginning to yield positive results and that Gucci is regaining its footing in the competitive global luxury market.
