Kering Reports Q4 Sales Drop Amid Gucci Struggles

Kering, the luxury group known for brands like Gucci and Saint Laurent, reported better-than-expected fourth-quarter results despite a 12% year-on-year decline in revenues, totaling €4.39 billion. Gucci's sales plunged 24% during this period, continuing the brand's struggle with weak demand, particularly in China. Investors reacted positively to the news, with Kering shares climbing up to 6.7% as analysts noted signs of potential stabilization within the company. The recent departure of Gucci's designer, Sabato De Sarno, and the appointment of a new CEO, Stefano Cantino, are seen as significant moves to revive the brand. Kering's annual recurring operating income also fell by 46%, reflecting broader challenges in the luxury market. CEO François-Henri Pinault expressed confidence in a gradual return to growth, emphasizing ongoing brand transformations.