Kering on the crossroads: Gucci’s identity crisis intensifies

After a disappointing quarter, Kering is under increasing pressure because his figurehead has to struggle with a difficult transition. Industry analyst: Inside, warn that the global luxury sector enters a phase of stagnation, and Gucci, once the fastest growing brand of Kering, seems to be particularly susceptible.

Gucci’s decline in sales by 25 percent in the first quarter marks an in -depth downward trend that is particularly worrying, since the brand had already recorded a decrease of 21 percent in the same period of the previous year.

According to Yanmei Tang, analyst at Third Bridge, who shared her assessments with fashionunited, the global luxury market will probably not recover until 2027. “The prospects for the global luxury goods industry in 2025 should remain flat at best,” said Tang. “Although no severe decline is expected, but brands such as Gucci – which are strongly dependent on demanding customers: the pressure on the continued exposure to the middle class will feel, especially in key regions such as China and the USA.”

Damped prospects

The financial performance of Gucci will probably continue to develop behavior in 2025, whereby sales and profitability are under pressure. The brand is fighting with a slow product cycle, especially in the category of leather goods, which was once a central growth driver. Analyst: Inside criticize a “lack of outstanding products”, which could rekindle the interest of consumers: re -infiltrate or bring them back to the boutiques.

The appointment of Demna Gvasalia, which is known for its limits at Balenciaga and is now active as Artistic Director at Gucci, has added a new level of complexity, according to Tang. Gvasalia’s vision is a clear departure from the calmer, more versatile heir that is the former creative directors Sabato de Sarno and Alessandro Have left Michele.

While there is potential upward potential in the area of ​​ready-to-wear-where Gvasalia Streetwear competence may be a connection to the inside of the gene Z and the millennial generation-the lack of a coherent brand count is increasingly regarded as a burden. Gucci tries to gain a foothold in the middle of leadership changes and changing creative signals.

For Kering, which has already experienced a slowdown with the dynamics in other important houses, a lot is at stake. Investor: Inside and industry observers: Inside, look closely at whether Gucci can manage to reconcile courageous innovation with brand consistency – or whether the company is risking to become a case study on the dangers of disruptive reinvention without becoming a uniform strategy.

Tang summarizes the mood under Expert: “Without a clear creative and commercial orientation, Gucci risks a further erosion of consumers: internal confidence and financial performance.”