Global luxury group Kering, headquartered in France, announced revenue for the first quarter of fiscal 2024 (Q1 FY24) down 11% YoY to €4.5 billion (about $4.81 billion). A 2 percent positive impact from the consolidation of the recently acquired Creed and a 3 percent negative impact from currency changes are included in the reported revenue decline.
Kering’s directly operated retail network saw a comparable 11 percent decline, primarily as a result of lower store traffic. While the revenue patterns in the Asia-Pacific area experienced a more notable fall, those in Western Europe, North America, and Japan remained consistent with the fourth quarter of FY23.
The wholesale and other segments saw a decline as well; on a comparable basis, their revenues fell by 7%. According to a press release from the firm, this decrease is a result of Kering’s continuous efforts to improve the exclusivity of distribution for its many luxury houses.
One of Kering’s main brands, Gucci, saw a sharp drop in revenue during the quarter, which came in at €2.1 billion, down 18% on a comparable basis and 21% as reported. The brand’s directly operated retail network had a 19% decline, with notable losses primarily occurring in the Asia-Pacific area. Comparable wholesale revenues decreased by 7% as well.
