France’s Kering Sees 16% Revenue Drop in H1 2025 as Gucci Performance Falters

French luxury goods group Kering reported a significant 16% decline in revenue for the first half of 2025. The company’s revenue fell to €7.6 billion ($8.82 billion), largely due to weaker sales from its Gucci brand. Recurring operating income saw an even steeper drop of 39%, reaching €969 million ($1.12 billion).

Kering, known for luxury names such as Gucci, Saint Laurent, and Bottega Veneta, experienced a mixed performance across its portfolio. While other brands showed stable or slightly improved sales, Gucci’s poor performance heavily impacted overall results. Key challenges for Gucci include:

• Softer global luxury market conditions
• Shifts in consumer spending habits
• Product launches and marketing efforts that have not resonated well, particularly in major markets like China and the United States

According to luxury industry analyst Francesco Trapani, Gucci’s recent strategies have resulted in slower sales growth compared to previous years.

The financial report, released on July 30, 2025, attributes these difficulties to several macroeconomic factors such as inflationary pressures and currency fluctuations, which compounded the brand’s challenges.

In an effort to turn around Gucci’s performance, Kering’s CEO outlined specific plans to:

1. Refresh Gucci’s product lines
2. Increase digital engagement to attract younger customers
3. Implement initiatives to improve operational efficiency and reduce costs

Industry experts emphasize that Kering’s strategic shifts will be vital for the company’s return to growth in the second half of the year. As the luxury market remains highly competitive, Kering and its peers continue to adapt to evolving consumer preferences and global economic dynamics.

The half-year results not only serve as a barometer for Kering’s future performance but also provide important insights into broader luxury fashion trends in 2025. Investors will be closely monitoring whether Kering’s efforts lead to a recovery in Gucci’s sales going forward.

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