Gucci's weakness continues to cause problems for Kering

Gucci's weakness continues to cause problems for Kering

After a clear declining previous year (Sales down 21% year-on-year), Gucci continues to have a weak start to the new year. Sales in the first quarter amounted to €1.6 billion, representing a 24 percent decline compared to the same period last year. Demand in China, in particular, is weakening.

An important event at the beginning of the year was the Appointment of Demna Gvasalia as artistic director of Gucci.

Total sales in the first three months of 2025 amounted to €3.9 billion, 14 percent lower than the first quarter of last year.

François-Henri Pinault, Chairman and CEO, commented:

"As expected, Kering had a difficult start to the year. In this environment, we are fully focused on implementing our action plans to achieve our strategic and financial objectives and strengthen the positioning of our brands in all our markets. We are increasing our vigilance to address the macroeconomic challenges facing our industry, and I am convinced that we will emerge from the current situation stronger."

Directly operated retail sales declined by 16 percent on a comparable basis. The Asia-Pacific region (-25% yoy) was consistent with the fourth quarter of 2024, while Western Europe (-13% yoy), North America (-13% yoy), and Japan (-11% yoy) experienced a sequential slowdown.

In the first quarter, Kering closed 25 stores, reducing its directly operated network to a total of 1,788 stores.