Gucci sales down 20 percent in first quarter after slowdown in Asia

Gucci’s sales have taken a tumble in the first quarter of 2024, falling 20 percent according to Kering’s forecasts. The transition of the house under a new creative director and commercial strategy required a phasing in of new product as well as updating store design. Kering said early customer response to Sabato De Sarno’s new Gucci was largely positive.

As sales slowed down in Asia Pacific, both Gucci and parent Kering have been more susceptible to regional consumer demand than perhaps other luxury brands and groups. The overall forecast for the group’s revenue is estimated to be down 10 percent compared to Q1 last year.

De Sarno’s debut collection, Ancora, has only been in store since mid-February, with Kering stating availability will gradually be ramped up over the coming months.

In a preliminary statement Kering did not highlight revenue from other houses such as Saint Laurent, Balenciaga or Bottega Veneta. The latter is thought to have been reducing its wholesale channel to focus on DTC sales, which will also impact turnover.

Balenciaga is still in recovery more from its advertising faux pas last year, winning back customers who are yet to return to the brand.