The French luxury goods group Kering SA continues to suffer from the weakness of its excerpting Gucci. On Wednesday, the group of companies reported a decline in sales by 14 percent to 3.88 billion euros for the first quarter of the 2025 financial year. The group announced that it would “double its vigilance to overcome the macroeconomic turbulence”.
“As we expected, Kering was confronted with a difficult start at the beginning of the year,” said Chief Executive Officer (CEO) François-Henri Pinault in a press release. “We double our vigilance to overcome the macroeconomic turbulence that affects our industry, and I am convinced that we will be stronger from the current situation.”
Regarding the American tariff, CFO ARMELLOM POULOU said in a conversation with a journalist: “We believe that we are able to protect our margins through price increases”.
“A lot of uncertainties”
“There are still a large number of uncertainties at the moment, so we are working on it,” added Poulou. In the first quarter, Gucci’s sales fell by 24 percent to 1.57 billion euros. “Gucci continues to work on the strengthening and renewal of his range, whereby the new handbag lines are well received,” assured Kering.
In mid-March, the group had announced the appointment of the previous Balenciaga designer Demna Gvasalia as the new creative director of Gucci as the successor to Sabato de Sarno, who had remained only for two years. A decision that the markets did not satisfy, because the next day the Kering share price gave up by eleven percent.
Yves Saint Laurent’s sales fell by eight percent to 679 million euros in the first quarter, while that of Bottega Veneta rose by four percent to 405 million euros. The total revenge of the “other houses”, which include Balenciaga and Alexander McQueen, decreased by eleven percent to 733 million euros.
Kering Eyewear’s turnover reached 476 million euros and, thanks to “Performance in Europe and the Optik” category, rose by four percent. According to the press release, the Kering Beauté division achieved “sales of 71 million euros and thus growth by six percent on a comparable basis”.
From a geographical point of view, the decline in group sales in the Asia-Pacific region was particularly strong (-25 percent). According to Kering, the development there was “in harmony” with the trend of the fourth quarter.
This article was used with digital tools translated.
Fashionunited uses artificial intelligence to accelerate the translation of articles and improve the end result. They help us make the international reporting of fashionunited a German -speaking readership quickly and comprehensively accessible. Articles that have been translated using AI-based tools are read and carefully edited by our editor: Correcting inside before they are published. If you have any questions or comments, please contact me by email to [email protected]