Kering's 2024 Annual Results: A Tale of Resilience and Strategic Investments

In the face of challenging market conditions, Kering, the global luxury group, has demonstrated remarkable resilience in its 2024 annual results. Despite a 12% decline in revenue on a comparable basis, the Group's recurring operating income fell by only 42%, highlighting its ability to maintain profitability through strategic investments and a focus on long-term growth.

Kering's strategic focus on enriching the offer, intensifying communications, and reinforcing the exclusivity of distribution for its Houses has paid off, with Gucci, Yves Saint Laurent, and Bottega Veneta all posting strong recurring operating margins. Gucci's recurring operating margin stood at 24.7%, while Yves Saint Laurent's was 22.0%, and Bottega Veneta's was 21.0%.

The Group's investment in sustainability and exclusivity has also contributed to its Houses' market position. Gucci's new offering was well-received, Yves Saint Laurent's fashion shows continue to garner universal acclaim, and Bottega Veneta's Leather Goods range remains a standout performer. Additionally, Kering Eyewear and Kering Beauté, boosted by the significant contribution of Creed, have both shown positive trends.

François-Henri Pinault, Chairman and Chief Executive Officer of Kering, stated, "With discipline and determination, we are executing a far-reaching transformation of the Group, and at Gucci in particular, at a time when the whole luxury sector faces unfavorable market conditions. This severely impacts our performances in the short term. Our absolute priority is to build the conditions for a return to sound, sustainable growth, while further tightening control over our costs and the selectivity of our investments. We have the right strategy, organization, and talents to achieve these goals."

In conclusion, Kering's 2024 annual results demonstrate the Group's ability to navigate challenging market conditions through strategic investments in its Houses' desirability, exclusivity, and sustainability initiatives. Despite a decline in revenue, the Group's recurring operating income and net income remained relatively stable, highlighting the success of its long-term strategy. As the Group continues to invest in the development of its Houses, it remains well-positioned to achieve its long-term vision and return to sustainable growth.