Become a Vogue Business Member to receive unlimited access to Member-only reporting and insights, our Beauty and TikTok Trend Trackers, Member-only newsletters and exclusive event invitations.
Kering sales fell 15 per cent to €3.7 billion in the second quarter of the year, as star brand Gucci continues to slip. Sales at the brand — Kering’s largest — dropped 25 per cent to €1.46 billion, after a 25 per cent decrease in the first quarter.
This is in line with analyst expectations for Gucci, while “all non-Gucci brands have done marginally worse than or in line with the negative expectations in the second quarter”, Bernstein luxury goods analyst Luca Solca noted. Recurring operating income fell 39 per cent to €969 million in the first half of 2025.
“The first half of 2025 has been a period of momentous decisions for Kering,” François-Henri Pinault, Kering chair and chief executive officer, said in a statement. “On the governance front, I recommended to the board of directors, which has agreed, that we entrust the role of Kering CEO to Luca de Meo, while I will retain the chairmanship. On the creative front, reinforced teams, headed by new designers at three of our largest houses, are hard at work, with passion and determination, intensifying the desirability and drawing on the heritage of all our brands. On the operational and financial fronts, in a particularly tough market environment, we continued to streamline our distribution and cost base, and, executing on our roadmap, we took decisive steps to strengthen our financial structure.”
Vogue Business unpacks the priorities for the luxury group’s new chief executive, Renault head Luca de Meo.
The industry is awaiting a creative overhaul at Gucci. Kering deputy CEO Francesca Bellettini told analysts during the call on Tuesday that new creative director Demna will hold a presentation for the brand in September. “It’s a full collection that will remind people what Gucci is. It’s just not presented as a fashion show,” Bellettini said. While the full collection will be available in stores from the beginning of January, she added that certain outposts will begin receiving new designs from that collection as early as September. His first runway show will be in March for the Autumn/Winter 2026 season. A pre-fall collection will arrive in stores before March.
Saint Laurent revenues decreased 10 per cent and Bottega Veneta rose 1 per cent in the second quarter on a comparable basis. On the deceleration of Bottega Veneta, versus Q1 when it grew 4 per cent, Bellettini cited low tourism flows. “Louise Trotter’s first collection will be presented in September. The transition is going very well,” she added.
The British designer will succeed Matthieu Blazy, Kering and Bottega Veneta announced today.
Kering’s other houses division, which includes Balenciaga and Alexander McQueen, reported a sales decline of 16 per cent. The Kering eyewear and corporate segment was up 3 per cent.
By geography, group retail sales were down 10 per cent in North America in Q2, down 17 per cent in Western Europe, down 29 per cent in Japan and down 19 per cent in Asia-Pacific. The rest of the world saw a 5 per cent dip “as events impacted the Middle East”, according to CFO Armelle Poulou. The group said trends in North America and Asia-Pacific improved compared with the first quarter of 2025, while Western Europe and Japan decelerated sequentially, mainly credited to a sharp decline in tourism.
Despite the wider luxury slump, Kering is particularly lagging compared to its high-end counterparts. Rival LVMH reported a 4 per cent sales decrease in the second quarter, dragged down by its fashion and leather goods division, which fell 9 per cent. Richemont reported sales up 6 per cent in the quarter ended 30 June (propped up by its jewellery maisons, which rose 11 per cent). Burberry’s like-for-like sales were down 1 per cent. Moncler Group’s sales also slipped 1 per cent in Q2. Hermès and Prada Group are to report their numbers this Wednesday; HSBC estimates sales will be up 9 and 10 per cent, respectively.
The luxury conglomerate cited a tough base of comparison in Japan last year as it posted another down quarter.
Is a turnaround on the horizon for Kering? Asked about the current quarter so far, Poulou noted that “Saint Laurent and Balenciaga are showing quite similar to the second quarter, while Gucci is slightly improving, keeping in mind that Q3 last year was weak. On the other hand, we expect Bottega Veneta to show a slower Q3 as campaigns and product launches are planned for Q4.”
“Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development,” Pinault added.
Pressed by analysts to comment on the timeline for de Meo’s refreshed roadmap, Kering deputy CEO Jean-Marc Duplaix said: “Luca has already met with several key internal stakeholders in the group, starting with François-Henri, of course, but also Francesca and myself. He’s preparing for his formal arrival, but it’ll be up to him to define his roadmap and to tell you when he will have the occasion to present his ambitions [...] We could expect that it would be rather in 2026, just giving him the time, even if we are working hard with him so that he can go fast when he arrives at Kering.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
LVMH’s fashion sales drop 9% in Q2
Paris Fashion Week unveils busy schedule ahead of high-stakes season
