Low profits for Gucci owner

French luxury goods giant Kering has reported a drop in profits for 2023, but vowed to continue to execute its investment strategy to get leading brand Gucci "back on track".

Kering, whose houses also include Yves Sain Laurent, Balenciaga and Bottega Veneta, reported a 17% fall in net profit to €2.98bn.

Sales fell 4% to €19.57bn during a year that chief executive Francois-Henri Pinault described as "difficult for the group".

"Our results again fell short of our expectations," Pinault said in a call with analysts.

"Together with our management team, we have decided that despite the current uncertain environment, we should not reduce our investments in the future," he said.

"This will put some pressure on our short-term results, but we are determined to make this short-term pain pay off in the long run," Pinault added.

Kering warned that its investment strategy would weigh on the group's full-year operating earnings.

Its earnings statement also cited "ongoing economic and geopolitical uncertainty". /BGNES