Chris Zarpas’ Post

Kering Lags Luxury Peers Quarterly sales fell by 9 percent, with weakness at Saint Laurent and Balenciaga as well as work-in-progress Gucci, as the group struggles to cope with slowing luxury demand. Read More: https://shorturl.at/pDQRX #LuxuryConnect #LuxuryCruxx

10% down. Kering continues to see the backlash of its recent transformation. What is behind the double-digit fall? - Kering aims to elevate all brands, cutting back on wholesale, pushing retail and increasing prices across all brands. For Bottega Veneta this seems to begin to work as higher average order values on purchases were specifically highlighted. Again, I wonder though, how much prices can be increased further? Dropping sales at Saint Laurent (-6%) show that consumers' still have trouble accepting the recent hikes. - Gucci just does not create a customer drag currently. The brand's revenue dropped by 19% yoy. Particularly shocking is that the once so powerful APAC region fell by 28%. In the release's webcast management highlighted that more and more pieces will be rolled out throughout Q2 and rest of the year. This should create some traffic. However, a full-fledged new store concept will only be in place late 2025 / early 2026. So, we will have to wait over a year to receive a full-fledged immersive new Gucci - that is a long experience drought. - Kering Eyewear & Corporate offset the negative trend with 9% growth. Kering Beauty should also be more active throughout the year - we can expect some fragrance newness at all brands. Personally looking forward to that. For now it seems Kering will go into somewhat of a longer recession while it aims to push its brands' equity. The group is betting that it will be able to push margins on that basis on mid- to long-term. A strategy that is working particularly well at luxury-industry posterchildren Louis Vuitton, CHANEL and Hermès. The latter is releasing its Q1 figures tomorrow morning, which will be particularly interesting to see if also the Ultra-Lux is hit by the overall market slowdown. #kering #luxury #fashion #strategy #creativity #capturetheessence

You need to be wary of the dangers of meanigless 'stats' and alarmist headlines, in 'reporting'. They can be made to support ANY narrative. The ACTUAL stats show that sales of Gucci items TREBLED, in the Decade between 2009 and 2020. 'Luxury' is gigantic. Scotch Whisky is reported in a similar way, if a 'News source' wants to frighten silly folk. Totally ignoring the double-digit annual growth, over years and casting doubt, by saying nobody's buying expensive stuff any more. The reality is the reverse of this. The 'Special Make' Bentley Division is enjoying Record Sales. Longer-term, it's also why the smart money is moving into Super-Luxury-Scotland and Scotch Whisky Tourism. The ACTUAL truth is, it's BOOMING. Covid (not just China) ravaged most luxury retailing. There was absolutely no point in buying a nice pair of Gucci loafers, if you couldn't wear them anywhere! The WORLD was largely closed for two years? You now need to read between the lines, of even the most respected sources. #Gucci #ScotchWhiskyTruths #SuperLuxuryScotland

Gucci’s China shock reverberates across the luxury landscape. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China. Read More: https://t.ly/xJr4i #LuxuryCruxx #LuxuryConnect

Gucci Sales Drop Amidst Asian Market Slowdown Paris, France – In a recent update from Kering, the Paris-based conglomerate that owns Gucci, it has been revealed that Gucci sales drop by an alarming 20% in the first quarter. This downturn is primarily attributed to a slowdown in the Asia-Pacific region, casting a shadow over the Italian luxury brand's performance. Asian Slowdown Hits Hard Kering's announcement laid bare the challenges faced by Gucci, highlighting a Gucci sales drop that stands in stark contrast to the resilience shown by its rivals, LVMH and Hermès... https://lnkd.in/gHqAAXQj

Cash rich luxury companies snap up high street retail properties in London, Paris and NYC. Instead of paying high rents, LVMH, Kering, Prada Group and Swatch Group used their cash reserves to spend more than USD 3 bn in the last 12 months for prime retail spaces for their own retail operations. Swatch Group reported today that they own now a real estate portfolio with a market value of CHF 4 bn with no debt attached. #realestate #luxury #retail #investments

A recent Fortune article revealed that Gucci-owner Kering is buying up prime property in New York worth nearly $1 billion, even as the luxury slowdown presses on. The article also notes that luxury retailers have leased 650,000 square feet of space in the U.S. over the past 12 months — a remarkable 160% increase compared to the previous year. This points to a significant vote of confidence in the resilience of retail real estate, projecting it as a "stalwart" through 2024. Luxury retailers, like Gucci, recognize that physical stores provide an immersive environment that online platforms can't replicate, offering an unparalleled sensory journey for shoppers. At Mood Media, we take pride in supporting retailers, including luxury brands, in creating captivating in-store experiences. Our solutions empower brands to elevate their spaces, engage audiences through curated visuals and soundscapes, and immerse shoppers in a multi-sensory journey that enhances brand identity. The investment in prime retail locations by luxury giants underscores the enduring power of physical retail, and we're here to ensure that these spaces are transformed into immersive, unforgettable brand destinations! Read the full article Fortune article here! >> https://bit.ly/47WZw3O #moodmedia #gucci #kering #NewYork #LuxuryRetail #PrimeRetail

Gucci >>>>>> NVIDIA 😱 The Rise of Secondhand Luxury Market 👜 Are you sitting on a goldmine without even realizing it? If you've got any hand-me-down Gucci bags tucked away, you might just be holding one of the hottest asset classes of 2024. In recent years, the secondhand luxury market has exploded into the spotlight. With shoppers pouring a staggering $1.3 trillion into new luxury goods over the past four years, there's now a growing trend towards cashing out on these investments through platforms like Vestiaire Collective. In 2023 alone, the secondhand luxury market saw a jaw-dropping $49.3 billion worth of transactions. But it's not just consumers cashing in – savvy investors are turning to luxury goods as a hedge against stock market volatility. The takeaway : Don't let your luxury items collect dust in the closet – there's a thriving market waiting to turn them into cash. But before you rush to invest in resale platforms, consider the cautionary tale of The RealReal, whose shares have plummeted over 90% since their 2019 IPO. In this unpredictable world of luxury trading, your old Gucci could be your ticket to a small fortune – or it might just end up as a chic storage solution for your old interview notes. Either way, it's time to unlock the potential of your closet and explore the exciting opportunities in the secondhand luxury market. 💼💰 #luxurymarket #Investing #SecondhandFashion #linkedin #investment #nvidia #gucci #fashion #luxurylifestyle #luxurygoods #finance #linkedinforcreators

Against a backdrop of normalization in the Luxury sector and reflecting transitions underway within the Group’s Houses, Kering’s revenue for the first quarter of 2024 was down 11% as reported and down 10% on a comparable basis to €4.5 billion. Kering’s performance worsened considerably in the first quarter. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline. In view of this revenue decline, together with our firm determination to continue investing selectively in the long-term appeal and distinctiveness of our brands, we now expect to deliver sharply lower operating profit in the first half of this year. All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.” François-Henri Pinault, Chairman and Chief Executive Officer https://lnkd.in/e8f_SspT Photo by David Sims 

Did you hear the buzz? The owner of Gucci, Kering, has made headlines by acquiring one of the world's most prestigious buildings nestled in the heart of Milan, Italy, for a staggering $1.4 billion Milan, renowned for its fashion, design, and cultural significance, continues to be a beacon of elegance and sophistication in the global landscape. This acquisition not only underscores Milan's status as a hub for luxury and innovation but also marks a significant milestone in the city's real estate history. As professionals in the marketing sector, we understand the power of strategic investments and the impact they can have on brand presence and market influence. This move by Kering not only solidifies their commitment to Milan but also sets a precedent for the industry, showcasing the enduring allure of premium real estate in prime locations. Let's continue to watch with anticipation as Milan's skyline evolves, reflecting the dynamic spirit of entrepreneurship and creativity that defines our industry. #MilanRealEstate #LuxuryInvestments #Kering #Gucci #MilanFashion #MarketingMastery