2023 saw sales from the directly operated retail network, including e-commerce, remain stable on a comparable basis, while wholesale and other revenue fell.

Recurring operating income for the full year was €4.7 billion, down 15% on 2022, while the recurring operating margin was down from 27.5% to 24.3%. Net income for 2023 was €3 billion.

In the fourth quarter of the year alone, revenue was down by 6% as reported and 4% on a comparable basis. Sales in the period dropped by 2% on a comparable basis for the directly operated retail network.

Revenue grew in Asia Pacific and Japan in the fourth quarter of 2023, while trends in Western Europe and North America improved sequentially.

Gucci achieved revenue of €9.9 billion in the full year, down 6% reported and 2% comparable. Sales from the brand’s directly operated retail network, which accounted for 91% of revenue, dropped 2% on a comparable basis and wholesale revenue was down 5%. In the fourth quarter, Gucci saw revenue decline by 4% on a comparable basis despite improvements in leather goods and women’s ready-to-wear.

Gucci’s recurring operating income was €3.3 billion in 2023 with a recurring operating margin of 33.1%.

Yves Saint Laurent reported revenue of €3.2 billion, down 4% as reported and 1% on a comparable basis. Sales from the directly operated retail network rose by 4% on a comparable basis, while revenue from wholesale, undergoing rationalisation, was down 26% on a comparable basis.

Fourth quarter sales for the brand were down 5% on a comparable basis, while revenue from the directly operated retail network was stable. Yves Saint Laurent has recurring operating income of almost €1 billion in 2023 with a recurring operating margin of over 30%.

Bottega Veneta had a revenue decline of 5% as reported and 2% on a comparable basis in 2023 for a total of €1.6 billion. Directly operated retail network sales were up by 4% on a comparable basis, while wholesale revenue fell by 24%. Fourth quarter sales declined by 4% on a comparable basis and were up 5% in the directly operated retail network.

In 2023 as a whole, Bottega Veneta achieved recurring operating income of €312 million, with a recurring operating margin of 19%.

Other Houses (including Balenciaga and Alexander McQueen) had revenue of €3.5 billion in the full year, down 9% as reported and down 8% on a comparable basis. On a comparable basis, sales from the directly operated retail network rose by 3%, while wholesale revenue was down 29%.

Fourth quarter sales were down 5% on a comparable basis, while sales from the directly operated retail network were up 4%. Wholesale revenue was down 30%. 2023 recurring operating income was €212 million with a margin of 6%.

In 2024, Kering expects its recurring operating income to decline against 2023, particularly the first half of the year, weighed down by its investment strategy.

CEO and Chairman François-Henri Pinault said: “In a trying year for the group, we strengthened our organisation and took significant steps to further enhance the visibility and exclusivity of our houses. We are focused on revitalising Gucci, leveraging the unique blend of craftsmanship, Italian heritage and modernity that characterises this iconic house. The launch of Kering Beauté and the acquisition of Creed, a storied maker of high-end fragrances, will enable us to capture our share of the steadily growing beauty market.

“In a market environment that remains uncertain in early 2024, our continuing investments in our houses will put pressure on our results in the short term. Thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long-term ambitions.”