Gucci, under Kering SA, faced a setback with a 4% decline in comparable revenue in the fourth quarter of last year, attributed to challenges in attracting affluent consumers to its high-end products. Kering's CEO, Francois-Henri Pinault, acknowledged the struggles, emphasizing a focus on revitalizing Gucci after a challenging 2023 that fell short of expectations. 

Despite the decline, Kering's shares surged up to 5.6% in Paris, signaling investor confidence in Pinault's commitment to address Gucci's issues and relief that the brand's performance wasn't worse. Analysts anticipated the underperformance but noted that it aligned with expectations. Amid a luxury market adjusting to subdued spending levels post-pandemic, Kering anticipates challenges ahead, with projected declines in recurring operating income for 2024, particularly in the first half, as the company remains cautious and cost-disciplined amidst ongoing investments.