Kering's New CEO Battles to Revitalize Gucci Amid Revenue Decline
Kering, under new CEO Luca de Meo, reported a smaller-than-expected decline in sales, seeking to stabilize the Gucci owner. Despite ongoing revenue challenges, Kering's strategic restructuring aims to improve margins, address debt issues, and revitalize the business alongside closures of underperforming stores.
Kering, renowned owner of luxury brands including Gucci and Yves Saint Laurent, reported a minor 3% decline in its fourth-quarter sales, surpassing analyst expectations amidst economic turbulence. New Chief Executive Officer Luca de Meo is spearheading the company's strategic realignment as he takes bold steps to stabilize operations and improve profit margins.
The iconic Italian label, Gucci, witnessed a 10% revenue decline, which was slightly better than the predicted 12% drop. The company attributed recent improvements to successful new product lines and strong handbag sales. Kering's finance chief, Armelle Poulou, highlighted Gucci's rising sales trajectory in nearly all regions, despite ongoing challenges.
With a long-term vision outlined by de Meo, the company continues to tackle significant debt issues while streamlining store operations. This includes reducing its store network by 75 boutiques within the year, aiming to enhance overall financial performance. De Meo plans to present further strategic insights during an upcoming investor day in April.
Google News