Kering first-half sales crater by 16pc

July 30, 2025

Second quarter results fell by 18 percent to $4.24 billion. Image credit: Kering

By Zach James for Luxury Daily News Service

French luxury conglomerate Kering is continuing to reel from an adverse market environment.

For the first half of 2025, the company generated revenues of 7.58 billion euros, or $8.7 billion at current exchange, a 16 percent year-over-year drop on a reported basis. Double-digit percentage declines in sales at the corporation’s signature brands are behind the negative results.

“The first half of 2025 has been a period of momentous decisions for Kering,” said François-Henri Pinault, chairman and CEO of Kering, in a statement.

“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,” Mr. Pinault said. “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.”

Sustained struggles
Kering’s financial intake is declining by double digits among all major business regions, including North America, APAC, Japan and Western Europe.

At Italian fashion label Gucci, which makes up roughly 40 percent of the group’s earnings, sales fell by 26 percent y-o-y through June 30. While the brand’s performance improved slightly in North America and Asia, global wholesale and directly operated retail declined by 42 percent and 24 percent, respectively.

The label is looking to two frequent luxury luminaries to embrace its central icon. Image courtesy of Gucci/Daniel Arnold The group’s net debt has reached $10.9 billion. Image courtesy of Gucci/Daniel Arnold

French fashion house Saint Laurent faced similar roadblocks, with sales down by 11 percent. Impacts were reduced, as the brand represents one-fifth of Kering’s earnings. The conglomerate’s Other Houses segment, including Alexander McQueen, Balenciaga and Brioni, saw greatly mixed results, leading to a 15 percent drop; jewelry maisons are said to have seen “solid” results.

Meanwhile, Italian fashion house Bottega Veneta brought in revenues of $971 million, a 1 percent uptick. The Kering Eyewear and Corporate sector, which also features Kering Beauté, also saw y-o-y sales growth to the tune of 2 percent.

In Sept, Mr. Pinault will step back as Kering’s CEO, with Italian automotive executive Luca de Meo succeeding the tenured luxury leader (see story).

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Kering first-half sales crater by 16pc

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