Kering to Report 2023 Results: What You Need to Know

Gucci owner Kering is set to announce its financial results for 2023 on Thursday. Let's take a look at the key details:

Sales Forecast

Analysts predict that the French luxury-goods group will report revenue of €19.515 billion ($20.97 billion), based on Visible Alpha consensus estimates from 17 analysts. In the previous year, the company achieved sales of €20.35 billion.

Operating Profit

Kering is expected to post an operating profit of €4.89 billion, according to estimates compiled by Visible Alpha. This figure reflects a decrease compared to the prior year's operating profit of €5.395 billion.

Net Profit

For net profit, analysts anticipate a decline from €3.61 billion in 2022 to €3.17 billion in 2023, as reported by Visible Alpha consensus.

Over the past 12 months, shares in Kering have experienced a significant drop of approximately 33%. Analysts from Citi wrote that the company's shares took a hit in January after Burberry revised its expectations for 2024, suggesting potential challenges for brands going through a turnaround process, similar to Kering's Gucci.

Stay tuned for more updates on Kering's results.

Gucci's Turnaround Process Impacts Kering's Earnings Outlook

Gucci, the leading contributor to Kering's group revenue, has undergone a significant transformation since the appointment of Sabato de Sarno as the brand's creative chief in January 2023. However, this initial stage of Gucci's turnaround plan has posed challenges when it comes to mapping out Kering's earnings trajectory, as noted by Jefferies analysts in a recent research note.

It is projected that Gucci will generate approximately EUR9.905 billion in revenue for 2023, which marks a decline from the EUR10.49 billion achieved the previous year, according to Visible Alpha consensus. The luxury industry may face additional obstacles in 2024 due to a softer consumer demand environment. As consumers become more cautious with their spending, sales growth for luxury brands, including Gucci, could be negatively impacted, as highlighted by Bernstein analysts in their research note.

The future course of Gucci's turnaround journey and its ultimate impact on Kering's financial results remain complex to predict. Nevertheless, with its commitment to preserving key details and leveraging its distinctive style, Gucci is determined to navigate these challenges and continue its quest for success.

Kering Faces Multiple Challenges: Saint Laurent, Bottega Veneta, and Balenciaga

Kering, the luxury goods company, is encountering various obstacles, as stated by analysts at Barclays in a research note. One of the challenges is the slowing momentum at Saint Laurent, a brand owned by Kering. Additionally, Kering is facing issues with the brand strength of Bottega Veneta in China.

Furthermore, Barclays mentioned that Kering's performance may continue to suffer due to ongoing problems at Balenciaga, which arose in the fourth quarter of 2022. During that time, Balenciaga faced controversy over a photoshoot that involved inappropriate props.

Barclays analysts expressed caution about Kering's management's ability to address all these challenges effectively. They also acknowledged that a complete recovery might take time, especially considering the unfavorable environment.