Retail in Asia


Kering projects 10 percent decline in Q1 2024 revenue on Gucci sales drop in APAC

Luxury conglomerate Kering has issued an advisory ahead of the release of its first quarter 2024 revenue on April 23, projecting a decline in consolidated revenue for the first quarter of the year.

The period was expected to be challenging, according to Kering.

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Based on current trends, the group estimates a decrease of approximately 10 percent on a comparable basis against the same period last year.

The decline in performance is chiefly attributed to a significant drop in sales at Gucci, particularly in the Asia-Pacific region, with comparable revenues expected to be down nearly 20 percent year on year.

A Gucci boutique in Ginza, Tokyo. Source: Shutterstock

Since mid-February, select Gucci stores have been offering early products, predominantly ready-to-wear items, from the highly anticipated Ancora collection. The collection’s availability will gradually expand over the next few months.

Gucci creative director Sabato de Sarno, appointed in early 2023, presented his debut runway collection at Milan Women’s Fashion Week in September 2023.

SEE ALSO: Gucci opens first-ever Gucci Salon in Japan

Kering’s revenue will encompass the impact of Creed’s consolidation for the entire quarter, alongside a negative foreign exchange (FX) effect. The combined influence of these factors is estimated to range from approximately -1 percent to -2 percent.

As reported, Kering’s annual sales declined in 2023, as the luxury conglomerate continued to struggle with comparable sales declines across all major brands during the fourth quarter.