Gucci Reports a 25% Decline in Sales

Kering announced a 14% decline in revenue for the first quarter of 2025, reflecting the decelerated growth revealed by LVMH earlier in the week.

Today, Kering, the parent company of Gucci, announced a 14% decline in revenue for the first quarter of 2025, reflecting the lackluster figures disclosed by LVMH earlier this week. Kering attributed the poor result on diminished shop attendance and lackluster wholesale figures at Gucci, as reported by WWD.

In 2024, Gucci contributed 63% to Kering's operating profit, however the report was significantly impacted by a 25% decline in sales during the first quarter. Meanwhile, Saint Laurent declined by 9%, while other brands (Balenciaga, McQueen, Pomellato, and Brioni) fell by 11%. Nonetheless, Bottega Veneta's revenues rose by 4%, while Kering's eyewear sector experienced a 3% boost.

Kering CEO François-Henri Pinault stated, “In this environment, we are entirely focused on implementing our action plans to achieve our strategic and financial objectives and enhance the positioning of our brands across all markets.” “We are enhancing our vigilance to navigate the macroeconomic challenges confronting our industry, and I am confident that we will emerge more robust from the current circumstances,” he stated.

The industry-wide luxury downturn, coupled with contentious trade reforms, has placed Kering in a notably challenging predicament, as its flagship brand has previously faced difficulties in sustaining pace. In the wake of Alessandro Michele's exit and Sabato De Sarno's brief tenure, the selection of former Balenciaga creative director Demna has not elicited significant optimism.