French luxury group Kering has vowed to pour more money into Gucci to revive its star label after another slump in sales.
As clouds hang over the industry, it said revenues in the three months to the end of December were 6 per cent lower than a year earlier, at £4.2billion.
Sales at its Gucci, Bottega Veneta and Yves Saint Laurent brands fell 8 per cent, underlining the slowdown in demand for luxury goods.
Top gong: As clouds hang over the luxury goods industry, revenues at Gucci, worn by Miley Cyrus at the Grammys (pictured), were 6% lower than a year earlier
Chief executive Francois Henri Pinault said it would continue investing, even if it meant lower profits.
‘This will cause some pressure on our result in the short term, and I am absolutely determined to make this short-term pain pay off in the long term,’ he said.
‘We are focused on revitalising Gucci.’ In 2023, sales fell 4 per cent to £16.7billion while profits were down 15 per cent at £4billion.
After a post-pandemic splurge fuelled stellar sales, consumers have cut back, particularly younger, less wealthy clientele who are more vulnerable to inflation.
Kering shares rose 4.9 per cent in Paris but are 50 per cent below their 2021 peak.
‘Gucci is not performing worse than expected, which is a relief,’ said Piral Dadhania, an analyst at RBC.
Gucci has been outpaced recently by luxury rivals such as LVMH-owned Louis Vuitton and Chanel.