The French luxury conglomerate Kering announced Tuesday that although its revenue grew 4 percent over the course of 2014, its profit dropped five percent from €1.75 billion in 2013 to €1.66 billion.
There's a lot riding on a turnaround from Gucci under its brand new creative director, Alessandro Michele, and chief executive, Marco Bizzari. Though it's by far Kering's biggest luxury brand at €3.5 billion in revenue this past year, Gucci's sales have been sliding for the past few years, decreasing 1.1 percent by the end of 2014. (That's slightly better than its performance in 2013.) Now that Kering has replaced former creative director Frida Giannini and former CEO Patrizio di Marco, we'll just have to wait and see whether, and how quickly, sales will rebound under the new leadership.
If Gucci follows Saint Laurent's trajectory, they very well could. Kering says that the latter's revenue has doubled in the three years since Hedi Slimane came on board as creative director. In 2014, sales rose 27 percent to €707.3 million. Also showing solid growth is Bottega Veneta, which clocked a nearly 13 percent increase in revenue to €1.13 billion.
New year, new you, Gucci.