- Kering anticipates 1H recurring operating income to drop between -40% to -45%.
- First Quarter results showed comparable revenue decrease of -10%, matching estimates.
- Gucci revenue declined by -18% on a comparable basis, a notch under the estimates of -19.4%.
- Yves Saint Laurent saw a less severe decline on a comparable basis of -6%, better than the -6.75% estimated fall.
- Bottega Veneta showed resilience with a +2% increase in revenue on a comparable basis, defying the slight decrease prediction of -0.05%.
- Revenues for Other Houses fell -6%, worse than the -4.23% estimate.
- Eyewear and corporate revenue increased by +9% on a comparable basis, but was lower than the anticipated growth of +18.1%.
- Revenue for the period stands at EU4.50 billion, a -11% difference y/y, still surpassing estimations of EU4.47 billion.
- Individual revenues saw Gucci at EU2.08 billion and Yves Saint Laurent at EU740 million, both showing declines of -21% and -8.2% y/y respectively, beating estimates.
- Bottega Veneta’s revenue was EU388 million, a drop of -1.8% y/y, doing better than estimates. Other Houses had a revenue of EU834 million, down -7.4% y/y, failing to meet estimates.
- Eyewear and other corporate revenue rose to EU536 million, surpassing estimates with a +24% y/y growth.
- Currency effects and strategic repositioning have influenced the revenue drop, with a negative currency effect of 3% but a positive scope effect of 2% from the consolidation of Creed.
- First quarter revenue from Gucci’s directly operated retail network shrank by 19%, attributed to a substantial decline in the Asia-Pacific region.
- The company’s investment strategy is going to put pressure on the recurring operating income of the group, leading to a decline in the first half of the year compared to 2023.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With Kering‘s Smart Scores indicating a mixed outlook across various factors, the luxury and lifestyle goods company faces a dynamic long-term forecast. While receiving solid ratings in Dividend and Resilience, suggesting stability and shareholder returns, Kering‘s Value and Growth scores hint at areas that may require attention for sustained performance. The company’s momentum score falls in line with its overall profile, reflecting a moderate trajectory that aligns with industry trends.
Kering SA, known for its renowned brands like Gucci and Puma, operates on a global scale from its Paris headquarters. As a key player in luxury and sport & lifestyle markets, Kering‘s strategic positioning and diversified portfolio provide a foundation for long-term growth potential. Monitoring how Kering addresses the dimensions where its Smart Scores indicate room for improvement will be crucial in shaping its future performance and competitive standing within the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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