France’s Kering Faces 16% Drop in H1 Revenue as Gucci Weighs on Performance

Paris, France – Kering, the luxury goods group headquartered in Paris, has announced a significant decline in its first-half 2025 financial results. The company reported revenue of €7.6 billion (approximately $8.82 billion) for the period, marking a 16% decrease compared to the same period last year. Recurring operating income also took a sharp hit, falling 39% to €969 million (around $1.12 billion).

The decline was primarily driven by weaker performance in the group’s leading brand, Gucci. Despite efforts to reinvigorate sales through new product launches and marketing campaigns, Gucci’s revenue contraction weighed heavily on the overall group results. Kering’s management acknowledged the challenging market conditions, including shifts in consumer demand and cautious spending patterns in key regions.

The luxury conglomerate outlined that other brands within its portfolio showed resilience, but this was not enough to offset Gucci’s downturn. Reasons cited for the softer Gucci performance include inventory adjustments and evolving customer preferences in luxury fashion segments.

Kering’s Chief Executive Officer highlighted ongoing strategic measures aiming to stabilize growth and enhance profitability. These include:

• Optimizing the product mix
• Expanding e-commerce channels
• Increasing investments in sustainability initiatives, important for appealing to modern luxury consumers

Despite pressures in the first half, the company remains confident about its long-term outlook. Kering anticipates that its diversified brand collection and innovation strategy will support recovery in the coming quarters.

Market analysts note that the global luxury goods sector faces headwinds amid economic uncertainties and changing buyer behaviors. However, companies with strong brand value and adaptive strategies, like Kering, are expected to navigate these challenges effectively.

Kering’s financial update underscores the importance of agility and innovation in the highly competitive luxury market. The company continues to focus on enhancing customer engagement and accelerating digital transformation to drive future growth.

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