French luxury group Kering has promised to invest more money in Gucci to revive its flagship brand after another drop in sales.
As clouds hang over the industry, it said revenue in the three months to the end of December was 6 per cent lower than a year earlier, at £4.2bn.
Sales of its Gucci, Bottega Veneta and Yves Saint Laurent brands fell 8 percent, underscoring slowing demand for luxury goods.
Top gong: As clouds hang over the luxury goods industry, revenue at Gucci, worn by Miley Cyrus at the Grammys (pictured), was 6% lower than the previous year.
Chief Executive Francois Henri Pinault said he would continue to invest, even if it meant lower profits.
“This will cause some pressure on our short-term results, and I am absolutely determined to make this short-term pain pay off in the long term,” he said.
“We are focused on revitalizing Gucci.” In 2023, sales fell 4 percent to £16.7 billion, while profits fell 15 percent to £4 billion.
After a post-pandemic splurge fueled stellar sales, consumers have cut back, especially younger and less wealthy customers who are more vulnerable to inflation.
Kering shares rose 4.9 percent in Paris, but are 50 percent below their 2021 high.
“Gucci is not performing worse than expected, which is a relief,” said RBC analyst Piral Dadhania.
Gucci has recently been overtaken by luxury rivals such as Louis Vuitton and LVMH-owned Chanel.