Companies

Gucci continues to be a drag on Kering’s performance

Apr 24, 2025 France

The France-based luxury group has reported a weak first quarter. Gucci continues to weigh down on its performance, with revenue down on a reported basis by 24% year-over-year

“As we had anticipated, Kering faced a difficult start to the year. In this environment, we are fully focused on executing on our action plans to reach our strategic and financial objectives and strengthen the positioning of our Houses on all our markets. We are increasing our vigilance to weather the macroeconomic headwinds our industry faces, and I am convinced that we will come out stronger from the present situation”, said François-Henri Pinault, Chairman and CEO.

First Quarter Results

In the first quarter of 2025, the group’s revenue totalled 3.9 billion euros, a decrease of 14% on both a reported and comparable basis, as compared to the same period last year.

In this period, sales in Kering’s directly operated retail network declined by 16% on a comparable basis. However, while trends in Asia-Pacific (down by 25%) were in line with the fourth quarter of 2024, Western Europe (down by 13%), North America (down by 13%), and Japan (down by 11%) saw a sequential slowdown. Wholesale and Other revenue declined by 9% year-on-year.

Houses

Gucci continues to be a drag on the group’s performance. In the first quarter, its revenue decreased by 24% on a reported basis and by 25% on a comparable basis to 1.6 billion euros. In particular, sales in the directly operated retail network decreased by 25% on a comparable basis, against a background of low store traffic, and wholesale sales decreased by 33% on a comparable basis.

A key event of the quarter was the appointment of Demna as artistic director of Gucci, who is expected to present his first collection for the House in September.

At Yves Saint Laurent, revenue in the first quarter amounted to 679 million euros, down by 8% on a reported basis and 9% on comparable basis versus the first quarter of the prior year, with sales in the direct retail network down by 8% on a comparable basis and wholesale sales down by 24% on a comparable basis.

On the contrary, Bottega Veneta’s first quarter revenue increased by 4% to 405 million euros, both on a reported and comparable basis, as compared to the same period last year. In particular, sales in the directly operated retail network increased by 7% on a reported basis, driven by double-digit sales growth in Western Europe, North America and the Middle East. Wholesale sales decreased by 13% on a comparable basis.

Kering also reported that first quarter sales at the Other Houses totalled 733 million euros, down by 11% on both a reported and comparable basis.

Image Credits: purseblog.com

France Gucci Kering Luxury Quarter Results Results