Context for Gucci comments in Market Intelligence
Comments in the March 26 edition of leatherbiz Market Intelligence included references to warnings of sales revenue declines at luxury brand Gucci.
Parent group Kering will only publish its first-quarter results on April 23, but it has already released preliminary information that makes clear what it expects the figures to show. It is this that provides the context for the comments in the Market Intelligence newsletter.
On March 19, Kering said: “Current trends lead the group to estimate that its consolidated revenue in the first quarter of 2024 should decline by approximately 10% on a comparable basis, from last year’s first quarter.” In the first quarter of 2023, the group reported revenues of just over €5 billion.
It went on to say that it also expects “a steeper sales drop at Gucci, notably in the Asia-Pacific region”. Kering expects Gucci’s revenues for the first quarter to be down by nearly 20% on the figure for the same quarter last year, when it reported revenues for the brand of just over €2.6 billion.
