Kering’s H1 Revenue Drops 16% as Gucci’s Sales Slow, Impacting Group Results

Kering, the renowned luxury goods conglomerate, reported a 16 percent decline in its revenue for the first half of 2025, totaling €7.6 billion (approximately $8.82 billion) compared to the same period last year.

Financial Performance Overview

The group’s recurring operating income saw a significant drop of 39 percent, falling to €969 million (around $1.12 billion). This decrease is primarily due to sluggish sales from key brands, particularly Gucci, which heavily impacted Kering’s overall results.

Impact on Gucci and Other Brands

Gucci, being Kering’s flagship brand, experienced slower sales growth despite efforts to revamp product lines and marketing strategies. Analysts highlight that changing consumer preferences and intense market competition are major factors behind Gucci’s underperformance.

However, other brands within the group demonstrated resilience and growth:

• Saint Laurent
• Bottega Veneta
• Balenciaga

Strategic Response and Future Outlook

The CEO remarked, “We are adapting our strategy to the evolving luxury market dynamics.” Kering remains focused on innovation and sustainability to foster long-term growth despite the challenges faced in H1 2025.

The company continues to invest in:

1. Digital transformation
2. Expanding presence in emerging markets
3. Enhancing product innovation
4. Strengthening customer experience
5. Expanding ESG (Environmental, Social, and Governance) initiatives

Industry Context

Market experts note the luxury sector is undergoing a phase of adjustment, driven by consumers’ shift towards value-driven purchasing and sustainability concerns, which are reshaping brand loyalties. Kering’s results mirror these broader trends influencing the industry.

Looking forward, Kering aims to regain momentum in the second half of 2025 by focusing on these strategic areas, adapting to shifting market conditions, and reinforcing its commitment to sustainable luxury.

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