Kering ‘Fully Mobilized’ to Fix Gucci, CEO Tells Shareholders
François-Henri Pinault also shared his disappointment with the company's ailing share price. "We're obviously not satisfied at all, far from it," he said.
By Miles Socha
April 24, 2025, 12:58pm
Shares in Kering dipped 1 percent on Thursday, a day after the French luxury group reported a 14 percent decline in first-quarter revenues, and a 25 percent drop at its star brand Gucci.
Also on Thursday, at Kering’s annual shareholders’ meeting, chairman and chief executive officer François-Henri Pinault flashed a line chart showing how company’s shares have roughly halved in value over the past year.
“It’s a significant drop, and I know how disappointed you are and what it means for you in financial terms. We’re obviously not satisfied at all — far from it,” he said toward the end of a 90-minute presentation by various Kering executives, including Marie-Claire Daveu, chief sustainability and institutional affairs officer.
Pinault allowed that anemic demand for luxury goods and weak consumer sentiment, particularly in Asia, weighed on Kering’s fortunes in 2024.
“But this decline primarily reflects our underperformance, particularly at Gucci, our leading brand,” he said. “And let me tell you that the entire team around me is fully mobilized to ensure that we return to the results we can legitimately claim.
“The international context is of course very turbulent, but that does not scare us. Our top priority is to turn around Gucci in a sustainable and profitable manner, in the interest of all our stakeholders, and first and foremost, you, our shareholders. This is the commitment I make to you today,” he added.
It was his turn to trumpet how much faith he has in Gucci’s new artistic director, Demna, who will pick up the reins at the ailing Italian megabrand in early July, after parading a final couture collection for Balenciaga, which he’s revved up with supersized tailoring, chunky sneakers, logo tracksuits and drop-shoulder hoodies since arriving at the French house in 2015.
“Demna is one of the most influential and talented designers of his generation,” Pinault said, while acknowledging that his appointment was looked on dimly by investors and luxury analysts.
He argued that Gucci’s new chapter under Demna “promises renewed energy, a strong cultural impact, and above all, a reaffirmed authority on fashion. Demna will deploy his creative talent within the framework of the house’s codes.”
Beyond Gucci, he said, “our ambition is clear: to lead the transformations of our brands and reaffirm our position in luxury, while remaining true to what makes us unique.”
During a conference call Wednesday to elaborate on first-quarter results, Francesca Bellettini, Kering’s deputy CEO in charge of brand development, divulged that Demna would give the first “hint” of his vision in September.
Separately on Thursday, a Gucci spokeswoman confirmed to WWD that Gucci by Demna would be unveiled during Milan Fashion Week, scheduled for Sept. 23 to 29, although the format and exact date have yet to be defined.
Bellettini reiterated to shareholders how Gucci is finding green shoots in new handbag ranges including Emblem and Blondie, even as the brand suffers from low traffic and a “heavy drag” from carryover styles. “Capitalizing on novelties” was her main rallying cry, also touting Saint Laurent’s upscale Y bag and refreshed Sac du Jour model.
During a question-and-answer session, shareholders grumbled about everything from the falling share price and feeble dividend of 6 euros versus 14 euros in 2023 to the complicated WiFi login process and historic lack of shareholder gifts. (For the record, each exited with an item from Italian porcelain house Ginori 1735.)
The meeting was also disrupted by shouting PETA activists — one dressed in a snakeskin-print catsuit — demanding Kering stop using exotic skins. They were spirited away by members of the sizable security team at the gathering.
In a research note Thursday, Deutsche Bank lowered Kering’s full-year earnings per share forecast by 13 percent “given the [first quarter] miss and more cautious outlook for [first half] from management.”
