KERING Pop shares 6 % in the fourth quarter, even with the delay in the besieged Gucci brand

shares dry It emerged on Tuesday after the French luxury goods company reported better sales than expected in the fourth quarter, which nevertheless decreased on an annual basis amid late demand on the main Gucci brand.

The high -end fashion collection, whose brands also include Bottega Veneta, Balenciaga and Alexander Mcqueen, recorded a 12 % decrease in revenue in the fourth quarter to 4.39 billion euros ($ 4.52 billion), before making a little bit of the euro expectations.

Sales in Gucci, which represents nearly half of the group’s revenues, decreased by 24 % annually over a period of three months to 1.92 billion euros, on a similar basis, which led to the expansion of losses in the luxury mark once in the group.

KERING shares increased by 5.5 % in the opening of the trade on Tuesday.

The whole year sales decreased by 12 % to 17.19 billion euros, compared to 17.09 billion euros expected.

The total operating income for this year was 2.55 billion euros, in line with the expectations of the revised group as of October, but nearly half of the result 4.75 billion achieved in the previous year.

“In a difficult year, we have accelerated the transformation of many of our homes and moved firmly to enhance the health and desire of our brands in the long run,” said the Chairman and CEO Francois Henri Pinolt in a statement.

“Our efforts must remain sustainable and we are confident that we have pushed a point of stability, from which we will gradually resume growth.”

The French Fashion House indicated a slight improvement in Asia Pacific and North American sales through its brands in Gucci, Yves Saint Laurent and Bottega Veneta, but it has not provided details of specific markets.

KERING is the latest European luxury group to report profits in recent weeks, as investors are looking for signs of revival in a sector that is hindered by recession in consumer spending, especially in the main Chinese market.

Last month, the investors were Disappointed Through the results of the whole year a little better than the luxurious bell LVMH. The market has placed faith in a transformation at the sector level after that Star results From the owner of Cartier RichmontBut the continuous weakness of fashion and leather goods in LVMH, and slices of wine and spiritual drinks indicated more difference in the sector.

KERING, who was particularly exposed to the Chinese consumer, was particularly fighting from the acute stagnation, as the Gucci star sign fell from Vogue.

On Thursday, the fashion group announced the departure of Sabato de Sarreno in the design of Gucci, in the first major change since Stefano Cantino joined the CEO of Gucci to revive the brand. The designer was the minimum de Sarreno on the site for less than two years, after replacing Alessandro Michel, whose maximum designs have set the brand over the past years.

The company said in a statement that Di Sarreno’s replacement will be announced “in time.”

On Monday, Simone Ragazzi said, on Monday that KERING hopes to refer to the brand reset with a new design date, but added that it is possible that investors will remain cautious with the survival of old issues.

“This is hoping that the market will bet for a long time,” he told CNBC.

“The brand has used to climb and land in the past, because it is one of the most luxurious fashion groups,” continued. “Hope is that the new designer can stabilize the brand.”

KERING shares have now decreased by 2.5 % this year, as the stock has decreased more than half since 2023.

Luka Solka, chief analyst of global luxury goods in Bernstein, pointed to the positive developments in operating profits across almost all brands in 2024, but I noticed that the company still has a highly declining hill to return to its highest levels.

“The absolute decrease in 2023 is striking. This was” Annus’s horror “for KERING, which is reflected in the stock price. We expect the market to focus on the new creative responsibility of Gucci.”