Kering's First-Half Revenue Drops 16%

Kering, the luxury goods conglomerate, announced on Tuesday, July 29, 2025, that its revenue for the first half of 2025 fell by 16% as reported to €7.6 billion. On a comparable basis, revenue decreased by 15%.

Revenue for the second quarter of 2025 stood at €3.7 billion, down 18% as reported and 15% on a comparable basis. A negative currency effect of 3% contributed to the reported decline. Sales from the directly operated retail network decreased by 16% on a comparable basis, aligning with the first quarter's performance. Trends in North America (-10%) and Asia-Pacific (-19%) showed improvement compared to the first quarter, while Western Europe (-17%) and Japan (-29%) decelerated sequentially, largely due to a sharp drop in tourism.

The group's recurring operating income was €969 million, with a recurring operating margin of 12.8%, a decrease of 470 basis points from the previous year. Net income attributable to the group was €474 million. Free cash flow from operations amounted to €2.4 billion.

Among Kering's brands, Gucci experienced the most significant downturn, with revenue down 25% on a comparable basis. Yves Saint Laurent saw a 10% decrease, while Bottega Veneta reported a modest 2% increase. The 'Other Houses' segment collectively declined by 14%.

Kering Chairman François-Henri Pinault stated that the first half was a period of "momentous decisions," including governance changes and the appointment of new creative directors for three major houses. He also highlighted efforts to streamline distribution and cost structures amid a challenging market environment.