Today Gucci-parent Kering reported that its revenue fell by 14% first quarter of 2025, echoing weak results reported by LVMH earlier in the week. According to a report from WWD, Kering cited weak store traffic and weak wholesale numbers at Gucci as drivers of the low performance.
Gucci, which made 63% of Kering’s operating profit in 2024, added a heavy burden to the report with a 25% drop in sales in the first quarter.Elsewhere, Saint Laurent sank 9 percentm while “other houses” (Balenciaga, McQueen, Pomellato and Brioni) dropped by 11 percent. However, sales at Bottega Veneta increased by 4% and the eyewear division of Kering reported a 3% pickup. Meanwhile, Saint Laurent sank 9 percent and “other houses,” which includes Balenciaga, McQueen, Pomellato and Brioni, declined 11 percent.
Kering CEO François-Henri Pinault said “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” in a statement. “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,” he continued.
The industry wide luxury slowdown combined with controversial trade reforms has put Kering in a particularly difficult position as its flagship brand had already struggled to maintain momentum. Following the departure of Alessandro Michele, and Sabato De Sarno’s short reign, the appointment of former Balenciaga creative director Demna, hasn’t necessarily garnered strong optimism.
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