French luxury group Kering, owner of Gucci and Yves Saint Laurent, has reported a 18% downturn in its revenue for the second quarter (Q2) of 2025 to €3.7bn ($4.27bn), with a comparable basis decrease of 15%.
This reported revenue includes a negative impact from currency fluctuations amounting to 3%.
The company's directly operated retail network experienced a 16% drop in sales on a comparable basis, consistent with its first-quarter performance for the year.
Within regional markets, North America saw a 10% reduction and Asia-Pacific witnessed a 19% decrease in sales, both showing some improvement over the previous quarter.
However, Western Europe's sales decreased by 17%, and Japan faced a steeper decline of 29%, largely due to a significant fall-off in tourism.
The French luxury house posted net income attributable to the group of €474m in the first half (H1) of the year.
During the second quarter of 2025, Gucci experienced a 25% decrease in sales on a comparable basis, with its directly operated retail network sales falling 23%.
Yves Saint Laurent also reported a downturn in the same period, with sales dropping 10% on a comparable basis and a 12% decline in its directly operated retail outlets.
Conversely, Bottega Veneta saw a slight increase in revenue, with a 1% rise on a comparable basis.
Kering's Other Houses showed a 16% decrease in revenue on a comparable basis during the second quarter, with varying results across individual brands.
In the first half of 2025, Kering revenues fell 16% to €7.6bn.
Kering chairman and CEO François-Henri Pinault stated: “The first half of 2025 has been a period of momentous decisions for Kering. 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 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. 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.”
In response to an unpredictable economic and geopolitical landscape, Kering states that it is actively pursuing its strategic goals focused on sustainable profitability and growth.
The group is intensifying efforts to foster the expansion and success of its brands while firmly committing to enhancing operational efficiency.
