Kering Q2 sales miss as Gucci demand slumps

The luxury giant’s sales continued to slide, but Wall Street appears to be betting a turnaround is ahead.

7/29/25 1:11PM

Kering, the parent of Gucci and Saint Laurent, posted a rough Q2 marked by slumping sales and ongoing uncertainty.

Revenue dropped 15% on a comparable basis to 3.7 billion euros, falling just short of expectations. Sales of Gucci, which typically make up nearly half of Kering’s top line, plunged 25% in the quarter.

Still, Kering’s ADRs were up on Tuesday, suggesting investors may be willing to look past the sales slump, with hopes pinned on a reset under incoming CEO Luca de Meo, whose hiring was announced last month. He takes over in September.

Kering flagged weak demand across its markets, especially in Asia Pacific, citing geopolitical tensions and softer spending in China and the US as ongoing headwinds.

So far it’s been a mixed earnings season for luxury names, where performance appears increasingly tied to individual brand heat rather than sector-wide momentum.

In May, Coach parent Tapestry jumped after posting knockout Q3 results, boosted by a bold rebrand and buzzy Gen Z-friendly campaigns. Meanwhile, Capri, owner of Jimmy Choo and Versace, saw revenue slide 14% and cut its full-year forecast amid tariff uncertainty.

Kering shares are up about 7% year to date.

Toby Bochan, Luke Kawa

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Kering Q2 sales miss as Gucci demand slumps

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