Kering revenues plummet to €3.9bn amid Gucci sales decline

Luxury retail group Kering has reported a 14% drop in revenues to €3.9bn (£3.31bn) in Q1 2025 as its flagship brand Gucci saw sales decline by 24% to €1.6bn (£1.37bn).

Gucci’s revenues from its directly operated retail network declined by 25% amid low store traffic, while wholesale revenue fell by 33% on a comparable basis.

However, Kering stated that Gucci’s product range, and its new handbag lines are “well received” in Q2, including a “promising” launch for the new Softbit line.

Yves Saint Laurent revenues also fell 8% to €679m (£579.8m), but Bottega Veneta’s revenues increased by 4% to €405m (£345.8m). This was driven by double-digit sales increases in Western Europe, North America and the Middle East.

Additionally, by region, Asia-Pacific revenues were down by 25%, while Western Europe and North America reported a 13% decline. Japan also saw a -11% sequential deceleration.

Wholesale and other revenue declined by 9%. Within this, wholesale revenue from the group’s Houses fell by 23% on a comparable basis, primarily due to efforts to further strengthen distribution exclusivity.

In contrast, wholesale revenues from Kering Eyewear and Kering Beauté increased by 2%, while Royalties and Other revenue rose by 11%.

In the first quarter, the group closed 25 stores on a net basis, bringing its directly operated network to a total of 1,788 units.

François-Henri Pinault, chairman and CEO, said: “As we had anticipated, Kering faced a difficult start to the year. In this environment, we are fully focused on executing on our action plans to reach our strategic and financial objectives and strengthen the positioning of our houses in all our markets. We are increasing our vigilance to weather the macroeconomic headwinds our industry faces, and I am convinced that we will come out stronger from the present situation.”