Kering (KER) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined 12% year-over-year to €17.2 billion, with recurring operating income down 46% to €2.6 billion and net income group share at €1.1 billion, reflecting challenging luxury market conditions and adverse channel mix.

• Brand elevation, targeting higher-end clientele, and product quality remain central, with accelerated transformation initiatives and key leadership changes across major houses.

• Sustainability remains a core commitment, with significant progress on climate targets and recognized leadership in ESG rankings.

• Free cash flow from operations (excluding real estate) rose 7% to €3.6 billion, supported by disciplined capex and strong working capital management.

• Net financial debt increased to €10.5 billion, with a deleveraging trajectory in place and real estate disposals/refinancing totaling over €3 billion.

Financial highlights

• Full-year revenue reached €17.2 billion, down 12% year-over-year in both reported and comparable terms.

• Recurring operating income was €2.6 billion, down 46% year-over-year, with a 14.9% margin.

• EBITDA dropped 29% to €4.7 billion; recurring operating margin contracted to 14.9% from 24.3% in FY23.

• Free cash flow from operations was €1.4 billion, or €3.6 billion excluding real estate.

• Dividend proposed at €6 per share, maintaining a 50% payout ratio of recurring net income.

Outlook and guidance

• 2025 is expected to be a year of stabilization, with modest or flat top-line growth and a focus on cost control and operational efficiency.

• EBIT is expected to remain stable, with H1 profitability under pressure and improvement anticipated in H2.

• Focus remains on organic growth, market share gains, and continued investment in brand equity, supply chain, and selective M&A.

• Wholesale rationalization and store closures will continue, with a focus on improving like-for-like sales in full-price stores.

• Ambition to regain gross margin basis points in FY25, excluding FX/hedging.