French luxury conglomerate Kering has announced a revenue of €3.9 billion (approximately $4.25 billion) for the first quarter (Q1) of 2025, representing a 14 percent decline in both reported and comparable terms. The group’s leading brand, Gucci, experienced a significant revenue drop of 24 percent as reported, and 25 percent on a comparable basis, totaling €1.6 billion.
In the wholesale segment, revenue fell by 33 percent on a comparable basis, while sales from the directly operated retail network decreased by 16 percent comparably. The Asia-Pacific region witnessed a 25 percent decline, consistent with trends observed in the fourth quarter of 2024. Meanwhile, Western Europe, North America, and Japan each saw reductions of 13 percent, 13 percent, and 11 percent, respectively, indicating a sequential slowdown.
During this quarter, the group closed 25 stores on a net basis, resulting in a total of 1,788 units in its directly operated network, as stated in a press release by Kering.
The group’s wholesale and other revenue fell by 9 percent, with wholesale revenue declining 23 percent on a comparable basis due to the ongoing enhancement of their distribution exclusivity.
By brand, Gucci’s revenue from the directly operated retail network dropped 25 percent on a comparable basis in the quarter, amidst a backdrop of diminished store traffic. Nonetheless, Gucci has further refined and refreshed its product assortment, with the new handbag lines, including the Softbit collection, receiving positive feedback.
Bottega Veneta reported a revenue of €405 million in Q1 2025, marking a 4 percent increase both reported and on a comparable basis. Sales within the House’s directly operated retail network rose by 7 percent on a comparable basis, building on a high comparison base, with increases across all product categories. Bottega Veneta’s impressive performance, bolstered by the brand’s cultural significance and appeal, was fueled by double-digit sales growth in Western Europe, North America, and the Middle East. However, wholesale revenue declined by 13 percent on a comparable basis.
Revenue from the group’s other houses reached €733 million in Q1 2025, reflecting an 11 percent decrease in both reported and comparable terms.
A notable event for the quarter was the appointment of Demna as Gucci’s artistic director.
“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 on 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,” stated Francois-Henri Pinault, chairman and chief executive officer (CEO) of Kering.
In summary, Kering Q1 2025 revenue decline highlights the challenges faced by the luxury brand during this period.
