Gucci is the jewel in the Paris-listed parent company Kering, and the headwind is clearly visible in Kering's financial report for 2024. For the full year, Kering's profit plummeted to 2.55 billion euros, a 46 percent decrease compared to the previous year. This means the lowest turnover for the group since 2016.
"A tough year" writes Kering in the financial report.
Kering has had headwind for several years, with a stock price fall of around 70 percent since the peak in 2021. But so far this year, the stock has risen by 2.5 percent.
Gucci's chief designer Sabato De Sarno left his assignment last week after trying to turn the trend and strengthen the brand for two years.
Kering is not alone in having headwind in the luxury sector. Several competitors have also reported challenging times, including those linked to a weak Chinese market.
