The Kering Group published its financial results for the first quarter of 2025 yesterday evening, revealing a worrying 14% drop in revenue compared to the same period in 2024. This decline raises questions about the company's future strategy and the dynamics of the luxury market in an uncertain global economic climate.
The group's sales amounted to €3.9 billion for the first three months of the year. Gucci, the group's flagship brand, continues to face significant challenges, with a staggering 25% drop in sales. For the time being, the strategies aimed at reviving the brand, which accounts for around 40% of the group's global sales, have proved unsuccessful.
The figures are also lower than financial analysts' forecasts, which predicted a 9.7% drop in the group's results and a 19.3% decline for Gucci.
The decline is the result of several factors, including lower sales in the Chinese market and increased pressure on profit margins due to inflation and higher production costs.
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The Trump administration's announcements on tariff increases have also contributed to dampening hopes for the US market, which is at risk of recession.
Kering recently implemented changes to its distribution strategy, including a focus on online sales and a reduction in its dependence on physical stores. While this may seem promising, the transition has encountered logistical challenges that have impacted performance.
The group has closed 25 stores since the beginning of the year and plans to continue streamlining its network, although many investors consider this measure inadequate given the severity of the losses. The appointment of Demna Gvasalia as head of Gucci did little to reassure shareholders, who were hoping for the arrival of an internationally renowned designer who could radically transform the brand's identity, which has become the group's weak point.
The day after his appointment, Kering's share price fell 11% on the stock market. Among the various brands linked to the holding company, Yves Saint Laurent's sales fell 8% to €679 million, while Bottega Veneta posted a positive result, up 4% (€405 million).
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