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Kering posted a 16% decline in revenue to €7.6 billion (£6.5 billion) for the first half of 2025, driven by a 26% drop in sales at its flagship brand, Gucci.
In the second quarter, the luxury group’s revenue fell 18%. While sales trends improved in North America (-10%) and Asia-Pacific (-19%) compared to the first quarter, performance weakened in Western Europe (-17%) and Japan (-29%), largely due to a significant drop in tourism.
Gucci reported revenue of €3 billion (£2.5 billion) in the first half of 2025, down 26% on a reported basis and 25% on a comparable basis. Comparable sales through its directly operated retail network fell 24%, while wholesale revenue dropped sharply by 42%.
While sales of existing products remained weak in the second quarter, new leather goods lines performed strongly. Notably, the Giglio bag – introduced as part of the Cruise 2026 collection – emerged as one of the brand’s most successful launches to date.
Yves Saint Laurent’s revenue declined 11% on a reported basis and 10% on a comparable basis to €1.3 billion (£1.1 billion). Comparable sales from the brand’s directly operated retail network were down 10%, while wholesale revenue declined 17%.
Bottega Veneta, however, reported revenue of €846 million (£731 million) in the first half, up 1% on a reported basis and 2% on a comparable basis.
Sales through its own retail network rose 3%, but wholesale revenue declined 3%. The brand saw “strong” growth in North America during the second quarter.
Revenue from Kering’s other houses totalled €1.5 billion (£1.2 billion), down 15% as reported and 14% on a comparable basis. Balenciaga showed resilience in its directly operated retail network, with stable sales in North America and modest growth in Asia-Pacific, though performance lagged in Western Europe and Japan. Meanwhile, Alexander McQueen continued to streamline its store network as part of an ongoing rationalisation strategy.
Kering Eyewear and Corporate sales rose 2% as reported and 3% on a comparable basis. In addition, Kering Beauté generated first-half revenue of €150 million (£129 million), up 9%, driven primarily by “strong” demand for Creed’s women’s fragrances.
Looking ahead, amid ongoing economic and geopolitical uncertainty, Kering remains focused on executing its strategy to build a path toward sustainable and profitable long-term growth.
François-Henri Pinault, Chairman and CEO at Kering, said: “The first half of 2025 has been a period of momentous decisions for Kering.
“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.
“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.
“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.”
The trading update follows Kering’s recent appointment of former Renault CEO Luca de Meo as Chief Executive Officer, succeeding François-Henri Pinault.
Pinault, whose family controls the luxury group, has led the company since 2005, taking over from his father and Kering founder, François Pinault, nearly two decades ago.
Under his leadership, Kering became a pure luxury player and enjoyed years of “spectacular growth”, in large part thanks to Gucci’s success.
However, since the pandemic Kering has struggled to reinvigorate the brand and also took on more than €10 billion in debt.
Time will tell if De Meo is the man to lead the turnaround and bring back some former glory to the beleaguered fashion giant.
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