Gucci-owner Kering posts revenue decline amid turnaround efforts

Investing.com -- Kering on Wednesday posted a third-quarter revenue decline, but saw signs of a sequential recovery across its luxury brands. The French luxury group is reducing debt and sharpening its focus on its core fashion brands.

Group revenue in the third quarter of 2025 was €3.42 billion, down 10% as reported and 5% on a comparable basis. The drop included a 5% negative currency impact.

Kering said the result marked a sharp improvement from a 15% comparable decline in the second quarter. Sales from the directly operated retail network fell 6%, while wholesale and other revenue was down 2%.

“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” said CEO Luca de Meo

The company is also selling its beauty biz to Loreal for 4 billion euros ($4.7 billion), the first major gambit by new CEO Luca de Meo as he stamps his mark on the luxury group and cuts back its debt pile.

Gucci, Kering’s largest brand, generated €1.3 billion in revenue, down 18% as reported and 14% on a comparable basis. Retail sales fell 13%, but improved from the previous quarter thanks to stronger momentum in North America and Western Europe and demand for new leather goods. Wholesale revenue dropped 25%. The brand presented its La Famiglia collection late in the quarter.

Yves Saint Laurent recorded €620 million in revenue, down 7% as reported and 4% on a comparable basis. Retail sales declined 2%, with growth in North America and a minor dip in Western Europe. Ready-to-Wear and Shoes saw double-digit growth, while wholesale fell 16% in line with rationalization plans.

Bottega Veneta posted €393 million, down 1% as reported but up 3% on a comparable basis. Retail sales rose 5%, led by North America and growth in Ready-to-Wear and Shoes. Wholesale revenue declined 9%.

Other Houses contributed €652 million, down 5% as reported but up 1% on a comparable basis. Retail sales were stable and wholesale rose 5%, supported by Balenciaga, McQueen, Brioni, and Jewelry Houses including Boucheron, Pomellato, and Qeelin.

Kering Eyewear and Corporate revenue reached €448 million, up 2% as reported and 6% on a comparable basis. Eyewear grew 7% and benefitted from key regional demand and a new Valentino partnership. Kering Beauté increased 3%, driven by Balenciaga and Creed launches.

You May Also Be Interested In

• Stripe’s OpenRouter deal signals a new race to control AI economics
• Deutsche Bank monitors UK auto sales as Chinese exports grow
• Morgan Stanley sees India steel stocks continuing gains