Profit at the UK arm of luxury fashion brand Gucci has cut almost in half during its latest financial year after “high competition” impacted its sales.
The West Sussex-headquartered division has reported a pre-tax profit of £4.8m for 2023, down from the £9m it achieved in 2022.
Newly-filed accounts with Companies House also show its turnover declined from £206.3m to £184.6m over the same financial year.
Gucci is owned by Kering whose brands also include Yves Saint Laurent, Brioni, Balenciaga, Bottega Veneta, Creed and Alexander McQueen.
A statement signed off by the board said: “Despite the ongoing challenges of the economic climate and the high competition in the luxury industry, that are impacted the business, the directors are satisfied with the performance of Gucci.”
On its outlook, Gucci added: “We continue to work towards increasing our market share by focusing on the achievement of organic growth on the existing stores network, providing an excellent retail experience to our customers and optimising and merchandise available for sale, along with investing in our current store portfolio.”
It also said: “In an environment of ongoing economic and geopolitical uncertainty in the near term, Kering will continue to execute on its strategy and vision, in pursuit of two key ambitions: to maintain a trajectory of profitable growth resulting in high levels of cash flow generation and return on capital employed, and to confirm its status as one of the most influential groups in the luxury industry.
“For 2024 and beyond, the house is poised to elevate luxury quality, exclusively and fashion creativity, thereby solidifying the brand’s long-term presence.
“Seizing this opportunity, Gucci aims to fortify business fundamentals and streamline processes for enhanced efficiency.
“This initiative includes strengthening the new operating model to consolidate leadership in the luxury industry, achieve its ambitions and ensure sustainable long-term growth.”