In the fourth quarter of 2024, Kering's revenue was down 12% both as reported and on a comparable basis.
Sales from the directly operated retail network decreased 13% on a comparable basis.
Trends improved sequentially in all regions, except Japan. Wholesale and Other revenue was down 10% overall on a comparable basis, and Wholesale revenue was down 25% for the Houses.
Kering is a conglomerate specialising in personal luxury goods, with brands like Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and more.
Sales from the directly operated retail network, including e-commerce, fell 13% on a comparable basis, affected by lower store traffic in adverse market conditions.
Wholesale revenue of the Houses was down 22% on a comparable basis, as they continued to heighten the exclusivity of their distribution. At Group level, Wholesale and Other revenue was down 9% on a comparable basis.
Free cash flow from operations was €1.4 billion in 2024. Excluding real estate transactions, it amounted to €3.6 billion, an increase of 7% compared to 2023. Good management of operating working capital contributed €0.7 billion to this performance.
In the fourth quarter of 2024, Gucci’s revenue decreased 24% on a comparable basis.
Summary of Kering's latest earnings report
- Revenue: €17,194 million - down 12% as reported and on a comparable basis
- Recurring operating income: €2,554 million
- Net income attributable to the Group: €1,133 million
- Proposed ordinary dividend: €6 per share
François-Henri Pinault, Chairman and Chief Executive Officer said: “In a difficult year, we accelerated the transformation of several of our Houses and moved determinedly to strengthen the health and desirability of our brands for the long term.
"Across the Group, and at Gucci first and foremost, we made critical decisions to raise the impact of our communications, sharpen our product strategies, and heighten the quality of our distribution, all in the respect of the creative heritage that distinguishes our brands.
"We secured our organisation, made key hirings, sped up execution, and intensified the efficiency of our operations.
"Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilisation, from which we will gradually resume our growth trajectory.”
Financial performance
- In 2024, Kering’s net financial expense totalled €614 million.
- The effective tax rate on recurring income was 27.1%.
- Net profit attributable to the Group was €1.1 billion.
- Earnings per share amounted to €9.2.
At the time of writing, Kering SA (EPA: KER) had a stock price of €247.40, up €3.2 (1.31%) today. Its market cap was €30.54 billion.
