Kering Group Reports Major Sales Drop in H1 2025: What It Means for Gucci, Saint Laurent, and More

Kering Group—the luxury powerhouse behind fashion giants like Gucci, Saint Laurent, Balenciaga, and Bottega Veneta—just reported a sharp revenue decline for the first half of 2025. In a high-stakes moment for the luxury industry, the group revealed that total revenue dropped 16% year-over-year, signaling a cooling of global demand and intensifying competition among legacy brands.

Whether you're a fashion investor, resale enthusiast, or just curious about the business behind your favorite designers, here’s everything you need to know about Kering’s 2025 H1 performance year-to-date, and what it could mean for the future of luxury fashion.

Kering’s 2025 Financial Overview: Key Numbers

• Total Revenue (H1 2025): €7.6 billion (~$8.8 billion USD), down 16% YoY

• Second Quarter: €3.7 billion, down 18% YoY

• Net Income: €474 million, down 46% compared to H1 2024

• Free Cash Flow: €2.4 billion, including €1.3 billion from real estate sales

This downturn marks one of the steepest declines in Kering’s recent history, driven largely by continued underperformance from its flagship brand: Gucci, which has been struggling over recent years.

Gucci Sales Plummet 26%

Long considered the crown jewel of Kering’s portfolio, Gucci saw a staggering 26% drop in revenue during the first half of 2025. The brand’s second quarter alone showed a 25% decline, revealing a slowdown in both core product sales and high-ticket luxury items.

Gucci’s softer performance may be attributed to:

• A transitional phase following creative director changes, and consumer backlash over the hiring of the controversial Demna

• Shifting consumer preferences toward quieter luxury pieces

• Increased competition from LVMH brands like Louis Vuitton and Dior, as well as the luxury powerhouse Hermes

• Reduced travel-related luxury shopping, especially in key Asia markets

While Gucci remains a staple in the resale market—especially for iconic styles like the Dionysus, Marmont, and Jackie 1961—its current retail momentum continues to lag.

Regional Sales Breakdown

Kering’s challenges spanned multiple regions, each showing signs of softening demand:

• Asia-Pacific: -19%

• Japan: -29%, due to a sharp drop in tourism

• Western Europe: -17%

• North America: -10%

The decline in Japan and Asia-Pacific, long considered crucial growth markets for luxury, is especially troubling. This also highlights the importance of regional diversification and localized strategies to better serve customers in different regions, as their preferences greatly differ.

Other Kering Brand Houses and Their Performance

Beyond Gucci, Kering’s “Other Houses”—which include Balenciaga, Bottega Veneta, Alexander McQueen, and Brioni—also struggled:

• Revenue for this segment declined 15% as reported (14% on a comparable basis)

Despite strong creative direction and cult-favorite products such as Bottega Andiamo and Balenciaga Le Cagole, these brands haven’t been able to offset Gucci’s downturn.

Brand Spotlights:

• Saint Laurent: While not broken out in this report, Saint Laurent has typically been Kering’s second-strongest performer. With evergreen styles like the Kate, Loulou, and Le 5 à 7, YSL’s steady demand may help cushion broader losses.

• Bottega Veneta: Continues to attract minimalist luxury buyers, but likely faced headwinds in Asia due to fewer tourist sales. Bottega Veneta also lost their former Creative Director, Mathieu Blazy, to Chanel back in 2024. This was a major loss for Bottega Veneta, as Blazy and his team were responsible for introducing key bag styles like The Andiamo and Sardine bags.

• Balenciaga: This troubled brand is still navigating reputational recovery following controversies under the watch of Demna in 2023–2024, which may likely continue to impact performance.

New Leadership: Luca de Meo Named Kering CEO

In a significant leadership shakeup, Kering announced that Luca de Meo, former CEO of Renault, will step in as Kering Group’s new Chief Executive Officer in September 2025.

While not a traditional luxury fashion figure, de Meo brings deep experience in global brand strategy, operations, and transformation. His appointment signals a potential pivot in business direction and perhaps a stronger focus on operational efficiency and brand differentiation.

What This Means for Luxury Shoppers and Resellers

For those buying or reselling luxury bags, Kering’s financial results are more than just headlines—they signal a changing market.

• Pre-loved Gucci bags may become more accessible, as demand cools in retail and more pieces enter the resale ecosystem.

• Saint Laurent and Bottega styles remain strong resale contenders, offering both timeless designs and also trendier pieces that are resonating well with consumers.

• Limited-edition or discontinued items from underperforming brands could see resale value spikes if production slows or stock becomes scarce.

• Shifts in creative direction (especially at Gucci) may mean new collections take time to resonate, making archival and vintage Gucci even more desirable in the short term.

Final Takeaways

Kering's 2025 sales decline marks a pivotal moment for the global luxury market. With brands like Gucci, Saint Laurent, Balenciaga, and Bottega Veneta facing headwinds, and new leadership on the horizon, the group is clearly at a strategic crossroads.

For luxury lovers, this could mean more variety (and potentially better prices) on the pre-loved market, especially for those shopping smart through trusted resale platforms like The Luxe Loop.

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