Gucci Limited has released its financial results for the past year, showing mixed performance. Despite some challenges, the company’s directors expressed satisfaction with the business’s overall performance.
The company, which operates Gucci’s stores and concessions in the UK, reported a decline in turnover, dropping to £184.6 million from £206.3 million in the previous year. However, it saw a significant improvement in gross margin, rising to 62.2% from 54.4% in 2022. Despite this, the stronger margin was not enough to offset lower profitability. Operating profit fell to £10.9 million, down from £12.6 million, while profit before tax dropped sharply to £4.9 million from £9 million. Net profit for the year was also lower, at £4.1 million, compared to £5.3 million in 2022.
The company remains focused on increasing market share by expanding organically through its existing stores, improving the retail experience, optimizing merchandise, and investing in its store portfolio.
Looking ahead to 2024 and beyond, Gucci aims to enhance its luxury quality, exclusivity, and fashion creativity, solidifying its long-term position in the market. The company plans to strengthen its business fundamentals and streamline processes to boost efficiency.
Gucci’s parent company, Kering, has faced challenges from the global luxury downturn, with forecasts indicating a significant profit drop in the second half of 2024, particularly affecting Gucci.
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