Kering, Gucci’s Parent Company Reported Major Loss in Sales This Quarter
Balenciaga, a controversial brand under the wing of this conglomerate, has also suffered with poor sales since the 2022 scandal. Gucci, the former star of the conglomerate has been struggling as well.
The luxury conglomerate, Kering, has reported a major loss in sales this quarter. Fashion lovers are ironically not surprised. Balenciaga, a controversial brand under the wing of this conglomerate, has also suffered with poor sales since the 2022 scandal. Gucci, the former star of the conglomerate has been struggling as well.
Drapers Online states, French-owned luxury group Kering reported €4.5 billion (£3.78 billion) in revenue for Q2 2024, down 11%, and €9 billion (£7.57 billion) for the first half, also down 11%. Operating income declined 42% to €1.6 billion (£1.35 billion) in H1 2024. Kering warned of a potential 30% drop in operating income for H2 2024.
Gucci’s revenue fell 18% on a comparable basis in H1 2024, with sales down 19% in Q2. Saint Laurent’s sales dropped 9%, while Bottega Veneta’s retail network sales rose 8% but wholesale revenue fell 19%. Kering remains committed to long-term value creation despite market challenges.
Luxury YouTuber Super Dacob alleges that other conglomerates may not be doing well too. Furthermore, some commenters claim that the quality of these brands have allegedly decreased while their prices are jumping up higher and higher.
Furthermore, LVMH sales have also dropped despite it not being as bad as Kering. But it appears that customers are voting with their wallets and are avoiding luxury brands if Coach and Michael Kors are able to offer better service and quality for their items at a much much lower price.
Regardless, fashion is always cyclical and there will be a time where they’re in full swing again. Some state that Gucci’s downfall is in lieu of them trying to change their image to somewhat of a “quiet luxury” brand when they’re known to be rather a loud and expressive brand.
Asir Fatagar