Kering's financial results for the fourth quarter of 2024 reveal Gucci sales fell 24%, marking one of the steepest declines since Sabato De Sarno took the helm as Creative Director. The luxury house posted an overall 23% decrease for the year, according to Kering's annual report released Wednesday morning.
The downturn extends beyond Gucci, with Saint Laurent recording an 8% drop in fourth-quarter revenue and a 12% yearly decline across Kering's portfolio. In contrast, Bottega Veneta emerged as a bright spot, achieving a 12% sales increase driven by strong performance in leather goods, particularly the Jodie and Andiamo intrecciato bag collections.
The financial report arrives amid significant changes at Gucci, following De Sarno's unexpected resignation last week. His appointment in 2023 came with the challenge of succeeding Alessandro Michele, whose ten-year tenure had transformed the brand. De Sarno's strategy focused on shifting away from trend-driven designs toward classic aesthetics and strengthening the menswear division, though his brief leadership received mixed responses from critics.
Gucci's Fall/Winter co-ed collection, scheduled to show on February 25th at Milan Fashion Week, will be De Sarno's final presentation for the house. The company has not named a successor, suggesting they may follow their previous approach of relying on the in-house design team, similar to the transition period between Michele and De Sarno.
The luxury sector has seen numerous leadership changes over the past year as brands adapt to shifting market conditions. Recent moves include Alessandro Michele's transfer to Valentino, Veronica Leoni's introduction at Calvin Klein during New York Fashion Week, Sarah Burton's upcoming debut at Givenchy, and Matthieu Blazy's new role at Chanel.
Industry analysts note these changes reflect broader challenges in the luxury market, where companies face increasing pressure to attract new customers while maintaining their existing base. The performance of Kering's eyewear division and Bottega Veneta's success offer some stability amid the group's overall revenue decline.
Share this article
Kristin Kaye
Insatiably curious about human expression, she immerses herself in literature, theater, art, and dance. Her academic journey led to degrees in Modern Literature, where she delved into The Furioso, and Historical Sciences with a focus on Contemporary History. Her studies took her to the prestigious Erasmus University Rotterdam, broadening her international perspective.
Her passion for culture isn't confined to personal enjoyment—it spills onto the pages of various publications. There, she explores not only artistic endeavors but also civil rights issues and the myriad ways human culture manifests itself. For her, writing about these topics isn't just a profession; it's an irresistible calling that stems from her deep-seated fascination with the human experience.