Kering is at 50% loss in the first 6 months of this year’s profit making a total of €878 million. The conglomerate brand made a forecast in April 2024 predicting an increase of 45%, but now recenttly reported that the group revenue was down 11%, to €9.0 billion, while the net profit is down by 50%.
Kering is the house of giant and well known brands like Bottega Veneta, Gucci, and Saint Laurent, it’s a conglomerate known to be layal to its brands by not breaking down the income of its brands but ‘rumour has it’ that Gucci is at loss in past recent years and that Bottega Veneta has been at the rescue of the conglomerate.
“In a challenging market environment, which adds pressure on our top line and profitability, we are working assiduously to create the conditions for a return to growth. Our Houses pursue their investments to enrich their offer, intensify the impact of their communications, and reinforce the exclusivity of their distribution. We make certain that every one of these investments creates value for the long term. While the current context might impact the pace of our execution, our determination and confidence are stronger than ever.” says CEO and Chairman François-Henri Pinault in a statement.
It’s been reported Kering has recently drew out a strategy to make the distribution of its brands’ products more exclusive leading to a decrease in store traffic within its directly-operated retail network and wholesale revenue. It’s been predicted improvement by the end of the year is not possible.
“In this very volatile environment, it’s very difficult to predict what will happen in August and September, so I won’t predict anything when it comes to the trends for the rest of the quarter.” said Jean-Marc Duplaix, Kering’s deputy chief executive officer.
