Kering (KER) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was €3.8 billion, down 15% reported and 16% comparable, reflecting challenging macro conditions, weak consumer sentiment, and lower store traffic, especially in Asia-Pacific and Japan.

• Retail and wholesale channels both saw double-digit declines, with ongoing wholesale rationalization and FX as a slight negative.

• Strategic focus remains on elevating brand desirability and relevance, optimizing store networks, and rejuvenating product and communication offers.

• Management is focused on transformation, cost control, and selective investment to restore sustainable growth.

Financial highlights

• Q3 2024 group revenue: €3,786 million, down from €4,464 million in Q3 2023, with retail (including e-commerce) accounting for 75% of revenue, down 17% comparable; wholesale and other revenue declined 12%.

• Bottega Veneta Q3 revenue was €397 million, up 4% reported and 5% comparable; retail up 9%.

• Gucci Q3 revenue was €1.6 billion, down 26% reported and 25% comparable; wholesale down 38%.

• Kering Eyewear and Corporate Q3 revenue was €440 million, up 32% reported and 7% comparable, supported by Creed.

• Nine-month 2024 group revenue was €12.8 billion, down 12% year-over-year.

Outlook and guidance

• Full-year 2024 recurring operating income/EBIT is forecasted at approximately €2.5 billion, reflecting ongoing macro headwinds, cost optimization, and a larger-than-expected Q3 slowdown.

• Q4 trends expected to be similar to Q3, with no significant improvement anticipated.

• The group will continue to prioritize long-term growth, cost control, and investment selectivity.