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Kering saw significant improvement in the third quarter of 2025, compared with the first half of the year and following a period of declining sales. Group revenue fell 5 per cent on a comparable basis to €3.42 billion in Q3, the company said on Wednesday, beating consensus expectations of a 8.8 per cent decline. Revenue at Gucci — its largest brand — was down 14 per cent to €1.34 billion, marking substantial progress compared with the first half of 2025, when it dropped 25 per cent.
“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” Kering CEO Luca de Meo said in a statement. “This reinforces my determination to work on all dimensions of the business to return our houses and the group to the prominence they deserve. We are working relentlessly on our turnaround, as shown by our recent decisions.”
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Kering announced a beauty deal with L’Oréal on Sunday, which “represents a major step forward”, Kering COO Jean-Marc Duplaix told analysts during Wednesday’s earnings call. “The rationale was not driven by the deleveraging situation that we have,” Duplaix said, calling the deal a “win-win”. Another recent decision was the postponement of the Valentino deal.
The group attributed Gucci’s “sharp sequential improvement compared to the second quarter to a stronger momentum in North America and Western Europe, along with the success of new products, particularly leather goods”.
Sales at Saint Laurent fell 4 per cent, versus a 10 per cent decline in Q2, which was credited to renewed growth in North America, as well as ready-to-wear. Kering noted that the house saw double-digit growth in ready-to-wear and shoes. The other houses division, including Balenciaga and Alexander McQueen, returned to growth, posting a 1 per cent uplift. That was notably due to Balenciaga’s performance in the US and double-digit growth in jewellery (the group’s jewellery brands include Boucheron, Pomellato and Qeelin). Sales at Bottega Veneta were up 3 per cent, while the eyewear and “corporate” division was up 6 per cent.
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By region, Kering retail sales in North America grew 3 per cent in the third quarter, Western Europe was down 7 per cent, Asia-Pacific declined 10 per cent, excluding Japan, which was down 16 per cent, and the rest of the world up 2 per cent.
Analysts had anticipated modest growth across third-quarter luxury earnings, supported by the US wealth effect and a stabilisation in China. So far, predictions have been accurate. LVMH’s fashion and leather goods division reported a sales decrease of 2 per cent in Q3, an improvement compared with a 9 per cent decrease in Q2. Hermès sales were up 9.6 per cent, experiencing slightly increased momentum compared to the first half of the year. Brunello Cucinelli posted a 12 per cent revenue increase. Prada is to report its earnings on 23 October, Moncler on 28 October and Richemont on 14 November.
“We could expect for the group that Q4’s year-on-year sales decline could be in the same order of magnitude as in Q3, despite a tougher comparison basis,” Kering CFO Armelle Poulou told analysts. The Kering management team confirmed that de Meo will present his roadmap during a capital markets day in spring 2026.
With Kering now being a partner of L’Oréal and L’Oréal being cited among potential buyers of Armani in Giorgio Armani’s will, could we envision Kering playing a role? “I think our plate is quite full. The priority for us is to work on the action plan that Luca is giving us and to the brands,” Duplaix said.
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