It's all good at the House of Gucci as The Kering Group sets sights on long-terms goals in stead of short-term returns.
It’s all good at the House of Gucci as The Kering Group sets sights on long-terms goals in stead of short-term returns.Let’s make one thing clear — Kering Group’s four percent rate drop is not a red flag. Earlier this month it was announced that the luxury conglomerate saw a four percent year-over-year decrease at the end of 2023 as compared to 2022. It is only fair to point out that Kering is still making a profit but just not as much. Here’s why.
Despite the decrease in Kering’s revenue, Kering Eyewear saw a record-setting 35 percent uptake in revenue for 2023 which equates to approximately USD 1.6 billion, which the company said was partially due to the consolidation of its Maui Jim brand, which Kering acquired in 2022. July 2023 saw The Kering Group make an acquisition bid towards, announcing that it bought a 30 percent stake in the Italian Maison for USD 1.83 billion in cash.
Kering also pulled its brands from Farfetch after the group terminated its contract with the platform, with future orders intending to be shipped directly from the brands’ respective warehouses. This comes after Farfetch was sold to South Korean e-commerce giant Coupang, which according to Kering chief Jean-Marc Duplaix, was no longer considered a strategic partner for some of the group’s luxury brands.
Moving forward, the Kering Group recognises the importance of the Chinese market and is set to open 10 stores annually in China across a range of brands to bolster growth. According to the China Daily, Chinese customers accounted for 26 percent of the company’s total sales for the third quarter of 2023, signaling the importance of China as a key market for Kering.Decreased sales revenue doesn’t always indicate a company’s downturn.
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