Kering, a global luxury group based in France, manages the development of prestigious brands such as Gucci, Saint Laurent, and Bottega Veneta. In 2023, Kering had 49,000 employees and achieved a revenue of €19.6 billion. However, the company faces significant economic challenges in 2024 while pursuing strategic initiatives to ensure sustainable and profitable growth.
Recent Publications
For the first half of 2024, Kering reported revenues of €9.018 billion, down 11% compared to the same period in 2023. This decrease is mainly due to a decline in sales performance at Gucci, which saw a nearly 20% year-on-year drop in the Asia-Pacific region. The group’s revenues were also impacted by difficult market conditions and a normalization of growth in the luxury sector.
Expansion and Strategic Acquisitions
Despite these challenges, Kering continues to invest in strategic acquisitions and real estate projects. In January 2024, Kering acquired a prestigious property in New York for $963 million, aiming to strengthen its presence in one of the world's most important markets. This investment is part of a selective real estate strategy to secure key locations for its brands.
Challenges and Strategic Responses
One of the major challenges for Kering is managing the creative transition at Gucci and revitalizing the brand. With the introduction of the "Ancora" collection in February 2024, Gucci hopes to reverse the negative trend and regain consumer interest. Simultaneously, Kering focuses on optimizing its cost structure to address declining revenues while continuing to invest in brand development.
Growth and Diversification Initiatives
Kering is also betting on product diversification and the expansion of high-margin segments like Kering Eyewear and Kering Beauté, which showed solid growth in the first quarter of 2024. The performance of the Jewelry Houses, notably Boucheron, has also been remarkable, contributing positively to the group's overall revenues.
Outlook
Kering anticipates a gradual recovery of its activities throughout 2024, despite forecasts of a 40% to 45% decline in recurring operating income in the first half compared to the previous year. The group remains focused on maintaining its trajectory of long-term profitable growth and consolidating its position as one of the most influential players in the luxury industry.
Vous trouverez en PJ un dossier de présentation de Kering.
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