In many rounds of economic fluctuations in the past, luxury goods were considered the most resilient, but this summer, with consecutive reports, the industry still experienced a collective avalanche.
According to the first half of 2024 report of Gucci’s parent company Kering Group, its revenue decreased by 11% year-on-year to 9.018 billion euros, with Gucci down 20% and Yves Saint Laurent down 9%.
Its profit situation is even more pessimistic, with the overall operating profit of the group falling by 42% year-on-year, almost halving. Among them, Gucci, Yves Saint Laurent, Bottega Veneta and other brands’ operating profits fell by 44%, 34%, 28% and 80% respectively.
LVMH had bad news a few days earlier than Gucci. In the first half of this year, its overall sales fell by 1% to 41.7 billion euros, and its net profit fell by 14% to 7.3 billion euros. The fashion and leather goods department, which accounts for half of the group’s revenue and includes LV Dior Celine, saw a decline of 2% in revenue and 6% in operating profit.
The performance continues to decline, and LVMH’s boss Arnault’s net worth has shrunk by $20 billion, making him the billionaire with the most wealth evaporated in 2024.
