Yesterday (April 23), Kering Group released its financial results for the first quarter of fiscal year 2025 (January to March 2025).
According to the financial report, Kering Group’s total revenue in the first quarter fell by 14% year-on-year to €3.883 billion. This double-digit decline was evident both on a reported and comparable basis. The report stated that the main reasons were macroeconomic uncertainties and weakened consumer confidence, which led to a slow start to the year. Retail growth slowed compared to the previous quarter, while the decline in wholesale business was in line with expectations.
Notably, this revenue performance was well below analysts’ earlier expectations of €4.09 billion, and the actual decline exceeded the anticipated 11.9% drop.
By segment, Gucci—the group’s flagship brand and largest revenue contributor—saw the sharpest decline, with revenue down 25% to €1.57 billion. Gucci’s performance also fell short of expectations and marked another consecutive quarter of underperformance for the brand.
In addition, Saint Laurent’s revenue declined 9% year-on-year in the first quarter to €679 million, while Bottega Veneta achieved a 4% increase, reaching €405 million—bucking the overall trend.
It’s worth noting that while several major brands underperformed, Kering’s eyewear and beauty segments continued to grow. Specifically, revenue from the eyewear and beauty division reached €558 million, up 3% year-on-year. Within this, the beauty segment (Kering Beauté) generated €71 million in revenue, marking a 6% increase. This growth was mainly driven by Creed’s new women’s fragrance. The report also revealed that Kering is preparing to launch new Balenciaga products soon.
By channel and region, retail (including e-commerce) accounted for 73% of total sales, down 16% year-on-year. Wholesale and other businesses made up 27%, declining 9% year-on-year.
Among retail markets, Asia-Pacific posted the steepest drop at 25% year-on-year. Sales in both Europe and North America fell by 13%, while Japan declined by 11%. Additionally, Kering closed 25 stores in the first quarter, bringing the number of directly operated stores down to 1,788.
Perhaps in response to Gucci’s continued weak performance over several quarters, Kering also announced in the financial report that it would terminate its collaboration with Gucci’s creative director Sabato De Sarno and appoint Demna as the new artistic director, who will officially assume the role in early July.
