Gucci’s never-ending fall (dragging Kering down with it). In the first quarter of 2025, Gucci plunges again: -25% in revenue (on a comparable basis). Well below analysts’ expectations, which had forecasted a -19% drop. This result follows the -24% recorded by the brand in the fourth quarter of 2024. In the first three months of 2025, Saint Laurent is down -9%, and the other labels, including Balenciaga, dropped -11%. The only brand to escape the slump is Bottega Veneta, with a +4% increase.
Kering down 14%
“As we anticipated, Kering faced a difficult start to the year,” begins CEO François-Henri Pinault in his statement. “I’m confident we will emerge stronger from the current situation.” Kering’s revenue in the first quarter of 2025 was €3.88 billion, a decline of 14% both at current exchange rates and on a comparable basis. A Visible Alpha consensus of analysts, cited by HSBC and reported by Reuters, had forecast a decline of 9.7%.
Gucci Plummets Again
“We are increasing our focus to face the macroeconomic headwinds affecting our industry,” said Pinault. However, that wasn’t enough to prevent another sharp drop for Gucci. Its revenue for the quarter stood at €1.6 billion, down -24% at current exchange rates and -25% on a comparable basis. For Kering, however, “its new handbag lines were well received.” Wholesale revenues fell by 33% on a comparable basis. Analysts fear that the recent creative director change (from Sabato De Sarno to Demna Gvasalia) may further delay the long-awaited turnaround for the brand. Demna has already started working with Gucci’s teams, said Kering’s CFO Armele Poulou, though she did not disclose when the new designer’s first collection will debut.
A Positive Exception: Bottega Veneta
Saint Laurent saw a 9% decline in comparable sales. The “Other Houses” division, which includes Balenciaga and McQueen, experienced an 11% drop in sales. Kering noted that “Balenciaga’s leather goods lines performed strongly, despite continued traffic declines in stores. McQueen’s sales declined.” The only positive sign for Kering came from Bottega Veneta, whose revenue (€405 million) rose 4% on both a comparable basis and at current exchange rates. “Sales in the directly operated store network,” Kering concluded, “rose 7% on a comparable basis. Sales increased across all product categories.”
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