Kering Reports 14% Revenue Drop in First Quarter 2025
Kering's first-quarter 2025 revenue fell 14% on both a reported and comparable basis to €3.88 billion, impacted by a slowdown in luxury goods sales across key markets.
Luxury group Kering announced on Wednesday that its revenue decreased by 14% in the first quarter of 2025, reaching €3.88 billion. Both reported and comparable revenues experienced this decline, impacting the company's overall earnings.
The group's directly operated retail network saw sales drop by 16% on a comparable basis. Geographically, Asia-Pacific trends mirrored those of the fourth quarter of 2024 with a 25% decrease, while Western Europe, North America, and Japan experienced sequential decelerations of 13%, 13%, and 11% respectively. Wholesale and other revenues fell by 9%, partly due to the ongoing strengthening of the Houses' distribution exclusivity.
Gucci's revenue was significantly affected, declining 25% on a comparable basis, attributed to low store traffic and weaker demand. Yves Saint Laurent's revenue decreased by 9% on a comparable basis, while Bottega Veneta showed resilience with a 4% increase in revenue, driven by strong product desirability and sales across all categories.
Kering Chairman and CEO François-Henri Pinault acknowledged the difficult start to the year as anticipated. He emphasized the company's focus on executing action plans to achieve strategic and financial objectives and strengthen the positioning of its Houses in all markets. Pinault expressed confidence that Kering will emerge stronger from the current situation.