Kering Expects Investments, Slowing Sales Growth to Hit Profitability in 2024

By Andrea Figueras

Gucci owner Kering expects investments in its fashion houses and a normalization of sales growth across the luxury sector to weigh on its profitability this year.

The French luxury giant on Thursday reported fourth-quarter sales of 4.97 billion euros ($5.35 billion), against expectations of EUR4.91 billion, according to consensus estimates provided by Visible Alpha.

For 2023 as a whole, the group reported recurring operating income of 4.75 billion euros ($5.12 billion), down from EUR5.59 billion in 2022.

For 2024, Kering expects a decline compared with last year's figure, particularly in the first half, it said.

Its Gucci brand, the group's largest contributor to group revenue, posted EUR9.87 billion, down from EUR10.49 billion in 2022.

"In a market environment that remains uncertain in early 2024, our continuing investments in our Houses will put pressure on our results in the short term," the French luxury conglomerate said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

February 08, 2024 02:33 ET (07:33 GMT)

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