Gucci Limited has reported its results for last year and despite the obvious negative points in there, the directors said they’re “satisfied with the performance” of the business.

The company operates the Gucci brand’s stores and concessions in the UK and said it saw ongoing challenges from the economic climate and high competition in the luxury space. 

Turnover for the year fell to £184.6 million from £206.3 million a year earlier. But the gross margin was strong at 62.2%, which was up significantly from 54.4% in 2022. That said, it wasn’t enough to tip the company into higher profitability. Operating profit was down to £10.9 million from £12.6 million. Meanwhile profit before tax fell sharply to £4.9 million from £9 million a year ago and net profit for the year was £4.1 million, down from £5.3 million in 2022.

The company said it continues 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.

“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.”

Gucci owner Kering has continued to suffer from the luxury downturn globally this year and back in July warned that its profit is set to tumble in the second half of 2024 with Gucci in particular struggling.