Against the backdrop of an overall slowdown in the luxury goods market, any weaknesses of brands and companies will be magnified.
The second quarter report for the 2024 fiscal year released by Gucci’s parent company Kering Group shows that the company’s operating profit plummeted by 42% to 1.58 billion euros in the first half of 2024, and it is expected that there will still be a 30% downward trend in the second half of 2024, which is based on the improvement of predicted revenue.
As early as the release of the financial report for the first quarter of 2024, Kaiyun Group had already given a “precautionary shot” to the outside world. The company has previously stated that due to deteriorating market conditions, it is expected that operating profit in the first half of 2024 will decrease by 40% to 45% year-on-year. This means that Gucci, as the main brand, has not turned the tide even after undergoing drastic brand image reforms with designer changes.
In the first half of 2024, Kaiyun Group’s revenue decreased by 11% to 9 billion euros. Among them, the main brand Gucci experienced the largest decline, with revenue dropping by 20% year-on-year to 4.09 billion euros. Among the other brands, only Bottega Veneta maintained its revenue, while Saint Laurent and other brands saw a 9% and 7% decline in revenue, respectively.
