France's Kering reports 14% drop in Q1 revenue amid Gucci's struggles
French luxury group Kering has reported a revenue of €3.9 billion (~$4.25 billion) in the first quarter (Q1) of 2025, reflecting a 14 per cent decline both on a reported and comparable basis. The group's flagship brand, Gucci, saw a revenue decrease of 24 per cent as reported, and a 25 per cent drop on a comparable basis, reaching €1.6 billion.
The wholesale revenue of the group was down 33 per cent on a comparable basis.
Kering has reported a 14 per cent decline in Q1 2025 revenue, reaching €3.9 billion (~$4.25 billion). Gucci saw a significant revenue drop of 24 per cent, while Bottega Veneta's revenue rose by 4 per cent. The group closed 25 stores, reducing its directly operated network to 1,788 units. Wholesale revenue declined by 33 per cent, and overall sales from the group's other houses dropped by 11 per cent.
Sales from the directly operated retail network fell by 16 per cent on a comparable basis. Trends in Asia-Pacific were down 25 per cent in line with those of the fourth quarter of 2024, while Western Europe saw a decline of 13 per cent, North America's declined by 13 per cent and Japan by 11 per cent witnessing a sequential deceleration.
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, Kering said in a press release.
The wholesale and other revenue of the group was down 9 per cent. Wholesale revenue dropped 23 per cent on a comparable basis, due to the ongoing strengthening of their distribution's exclusivity.
Brand-wise, Gucci's revenue from the directly operated retail network was down 25 per cent on a comparable basis in the quarter, against a backdrop of low store traffic. Gucci further strengthened and updated its product range, and its new handbag lines are well received, including a promising launch for the new Softbit line.
Bottega Veneta's revenue totalled €405 million in Q1 2025, up 4 per cent as reported and on a comparable basis. Sales in the House's directly operated retail network rose by 7 per cent on a comparable basis, on top of a high comparison base. Sales were up across all product categories. Bottega Veneta's outstanding performance, supported by the brand's cultural resonance and desirability, was driven by double-digit sales increases in Western Europe, North America and the Middle East. Wholesale revenue was down 13 per cent on a comparable basis.
Revenue from the group's other houses totalled €733 million in Q1 2025, down 11 per cent both as reported and on a comparable basis.
A key event of 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,' said Francois-Henri Pinault, chairman and chief executive officer (CEO ) at Kering.
Fibre2Fashion News Desk (SG)
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