THE WHAT? Kering has reported its results for the first quarter of fiscal 2024. The luxury goods conglomerate saw group revenue dive 11 percent (as reported) year-on-year to €4,504 million.

THE DETAILS Gucci’s performance was the key culprit, with revenue down 21 percent for the brand. Yves Saint Laurent and Bottega Veneta were not immune, however, dropping 8 percent and 2 percent respectively. Revenue from the group’s other house totaled €824 million, down 7 percent as reported.

THE WHY? Kering attributed the drop in revenue to ‘a backdrop of normalization in the luxury sector’ as well as transitions underway within the group’s houses.

François-Henri Pinault, Chairman and Chief Executive Officer, explains, “Kering’s performance worsened considerably in the first quarter. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline. In view of this revenue decline, together with our firm determination to continue investing selectively in the long-term appeal and distinctiveness of our brands, we now expect to deliver sharply lower operating profit in the first half of this year. All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.”