Kering’s Revenue Drops 16% in H1 2025 as Gucci Impacts Group Earnings

Kering, the renowned luxury group behind brands such as Gucci, disclosed its financial performance for the first half of 2025, revealing significant declines across key metrics.

Financial Highlights

• Total revenue dropped 16% year-over-year to €7.6 billion (approximately $8.82 billion).
• Recurring operating income fell sharply by 39%, reaching €969 million (about $1.12 billion).

Factors Affecting Performance

The downturn is primarily attributed to challenges faced by Gucci, Kering’s flagship brand. Key contributors to the decline include:

1. Volatility in consumer spending, especially in critical markets like Asia and Europe.
2. Changing consumer preferences and macroeconomic uncertainties impacting the luxury sector.
3. Heightened competition and shifting market trends affecting demand for Gucci products.

Although Gucci introduced new collections and marketing efforts, its slowed sales growth heavily influenced the group’s overall results.

Other Brand Performances

Brands within Kering’s portfolio exhibited mixed outcomes; some thrived in niche markets due to innovation, yet these gains were insufficient to counterbalance Gucci’s decline.

Outlook and Strategic Plans

Despite the challenges, Kering’s management remains optimistic about the latter half of 2025. The company intends to:

• Enhance digital strategies to better engage consumers.
• Expand offerings in sustainable luxury products.
• Streamline operations to improve efficiency and profit margins.
• Invest in long-term growth and maintain brand excellence.

This report underlines the complexities and uncertainties facing luxury brands amid global economic shifts and evolving consumer behavior, serving as a crucial indicator for the industry’s health in 2025.

About The Author