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French luxury group Kering has reported a revenue of €7.6 billion (~$8.82 billion) in the first half (H1) of 2025 ended June 30, a decline of 16 per cent as reported and 15 per cent on a comparable basis. The group’s recurring operating income dropped 39 per cent year-over-year (YoY) to €969 million (~$1.12 billion), with a recurring operating margin of 12.8 per cent, down 470 basis points (bps).
The net income attributable to the group was €474 million (~$549.84 million). Free cash flow stood at €2.4 billion. The retail sales across the group’s directly operated network fell by 16 per cent on a comparable basis. Wholesale and other revenue declined by 12 per cent on a comparable basis.
Kering has reported H1 2025 revenue of €7.6 billion (~$8.82 billion), down 16 per cent, with recurring operating income falling 39 per cent to €969 million (~$1.12 billion).
Net income was €474 million (~$549.84 million).
Gucci led the decline, while Bottega Veneta grew slightly.
Q2 revenue dropped 18 per cent.
Kering remains committed to operational efficiency, and long-term profitable growth.
The regional trends were mixed, with North America down 10 per cent and Asia-Pacific down 19 per cent, both showing sequential improvement. In contrast, Western Europe declined 17 per cent and Japan fell 29 per cent, primarily due to lower tourist activity, Kering said in a press release.
Brand-wise, Gucci saw a fall in revenue of 26 per cent to €3 billion, with retail down 24 per cent and wholesale down 42 per cent. Operating income halved to €486 million.
Yves Saint Laurent’s revenue declined 11 per cent to €1.3 billion. Retail and wholesale fell 10 per cent and 17 per cent respectively. The operating income was €262 million.
Bottega Veneta’s revenue rose 1 per cent to €846 million, driven by a 3 per cent retail rise. Operating income was up 5 per cent to €127 million.
Meanwhile, Other Houses saw a revenue drop of 15 per cent to €1.5 billion, with an operating loss of €29 million, mostly due to McQueen.
In the second quarter (Q2) of 2025, revenue totalled €3.7 billion, down 18 per cent as reported and 15 per cent on a comparable basis, including a negative 3 per cent currency impact. Direct retail network sales mirrored H1 trends, declining 16 per cent on a comparable basis.
Brand-wise, Q2 saw Gucci sales down by 25 per cent on a comparable basis. Retail fell 23 per cent, while wholesale plunged 50 per cent. Sales of new leather goods, such as the Giglio bag, performed strongly. Yves Saint Laurent’s revenue declined 10 per cent on a comparable basis. Retail fell 12 per cent, while wholesale dropped 5 per cent. Ready-to-wear and shoes performed well, added the release.
Bottega Veneta saw an increase in revenue of 1 per cent. Retail was stable, with strong North American growth. Wholesale grew 4 per cent. Other Houses’s revenue fell 16 per cent. Retail declined 12 per cent; wholesale dropped 28 per cent. While Balenciaga performed steadily in North America and Asia-Pacific, McQueen’s store rationalisation and sluggish sales in Europe and Japan affected the segment.
Despite persistent macroeconomic and geopolitical uncertainty, Kering remains focused on enhancing the desirability and exclusivity of its Houses. The group said that it will continue to invest selectively while improving operational efficiency and maintaining tight cost and capital discipline to achieve long-term profitable growth.
“The first half of 2025 has been a period of momentous decisions for Kering. On the governance front, I recommended to the Board of Directors, which has agreed, that we entrust the role of Kering CEO to Luca de Meo, while I will retain the chairmanship. On the creative front, reinforced teams, headed by new designers at three of our largest houses, are hard at work, with passion and determination, intensifying the desirability and drawing on the heritage of all our brands,” said Francois-Henri Pinault, chairman and CEO at Kering.
“On the operational and financial fronts, in a particularly tough market environment, we continued to streamline our distribution and cost base, and, executing on our roadmap, we took decisive steps to strengthen our financial structure,” added Pinault. “Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development.”
Fibre2Fashion News Desk (SG)
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