France’s Kering Faces 16% Revenue Drop in H1 2025, Gucci Impact Notable

Paris, France – Kering, the French luxury group, announced its financial results for the first half of 2025, revealing a significant downturn in its financial performance. The company reported a total revenue of €7.6 billion (approximately $8.82 billion), marking a 16 percent decrease compared to the same period in the previous year. This decline is largely attributed to challenges across several of its brands, with Gucci playing a prominent role in impacting the overall results.

In addition to the drop in revenue, Kering’s recurring operating income fell by 39 percent, reaching €969 million (about $1.12 billion). This decrease highlights growing pressure on profitability amid shifting market conditions and changing consumer demand. The luxury sector has been affected by various macroeconomic factors, influencing spending patterns in key markets.

Gucci, Kering’s flagship brand, experienced a notable slowdown in sales during the first half of 2025. Although Gucci remains a strong name in the luxury market, recent financial figures indicate challenges in sustaining its earlier growth momentum. This softer performance of Gucci substantially contributed to the overall revenue decline at Kering.

Meanwhile, other brands within Kering’s portfolio, including Saint Laurent, Bottega Veneta, and Balenciaga, exhibited relative stability by delivering steady revenue streams. However, their performance was insufficient to compensate fully for the impact of Gucci’s slowdown. The group is currently considering strategic initiatives aimed at bolstering growth and enhancing profitability in the future.

Strategic Priorities and Market Adaptation

Kering’s management emphasized the importance of adapting to the evolving luxury market landscape. Key focus areas include:

• Increased investment in digital platforms to better engage customers
• Sustainability efforts to align with changing consumer values
• Enhancing innovative customer experiences
• Expanding presence in growing markets to mitigate challenges faced in traditional regions

The financial results signify a period of adjustment for Kering amid ongoing global economic uncertainty. Market analysts consider this a temporary setback for one of Europe’s foremost luxury conglomerates, with prospects for recovery as consumer confidence stabilizes.

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