Full Year 2024 Kering SA Earnings Call Transcript
Key Points
- Kering SA (PPRUF) has maintained a consistent strategy focused on long-term brand health without short-term compromises.
- The company has a strong portfolio of complementary luxury brands, including Gucci, Saint Laurent, and Bottega Veneta, which are well-positioned in the market.
- Kering Eyewear and Kering Beauté have shown steady growth and profitability, contributing to the group's stability and resilience.
- The company has implemented a detailed strategy to elevate brand desirability and penetrate more elevated clienteles.
- Kering SA (PPRUF) has made significant progress in reducing inventories, particularly at Gucci, which saw a 40% reduction over two years.
- Kering SA (PPRUF) faced a challenging 2024, with results falling short of initial expectations due to adverse market conditions.
- Gucci experienced low traffic and a significant drop in sales, particularly in the second half of the year.
- The company's gross margin declined by 15% in absolute terms, with a 2% decrease as a percentage of revenue.
- Wholesale revenue was down significantly, with a planned further reduction in 2025, impacting overall sales.
- The company anticipates a year of stabilization in 2025, with modest top-line growth and continued pressure on profitability.
Good morning to all of you. I am pleased to welcome you to Kering's 2024 full year results presentation. To say the least, 2024 came far from meeting our initial expectations. We knew, and I told you a year ago that things would not be easy for Kering in 2024 as we were and still are operating a transformation, and we are doing this against adverse market conditions. But as you've seen throughout the year, things have been even tougher than what we had foreseen. I also told you last year that we would really build without taking any shortcuts. The long-term health of our brands is not compatible with short-term compromises or quick fixes.
So we are staying the course. The strategy we are implementing consistently since we began Kering, a pure player in luxury is unchanged. We have demonstrated in the past that we know to grow brands, and we will do it again. Gucci will come back. I have absolutely no doubt about this.
We've built a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
