Kering, first quarter revenues down 14% to 3.9 billion
The result is below analysts' estimates. All geographies declined, with China -25%.
by Mo.D.
3' min read
3' min read
Results below analysts' estimates for Kering in the first quarter of 2025. The French luxury group reported revenues of EUR 3.9 billion, down 14% on both a reported and comparable basis. All geographies weighed on the result, but the largest decline was recorded in Asia. The Asia-Pacific region recorded a decline of 25%, in line with the negative trend in the last quarter of 2024. The other major regions also showed signs of a slowdown: Western Europe -13%, North America -13%, Japan -11%.
"As we had anticipated, Kering faced a difficult start to the year. In this context, we are entirely focused on implementing our plans to achieve our objectives and to strengthen the positioning of our Maisons in the different markets. We are intensifying our initiatives to address the challenges facing the industry, convinced that we will emerge stronger from this situation," comments François-Henri Pinault, Chairman and CEO, in a note released to the market.
In Paris today, the share price rose 2.93% to €174.96 per share before the release of the quarterly report, in a positive session for the entire sector: Lvmh +4.35%, Hermès +2.25%, Burberry +5.36%, Moncler +1.19%, Salvatore Ferragamo +5.6%. The Kering share has fallen 25.6% since the start.
Sales channels
.During the quarter, the group rationalised its retail network with the net closure of 25 shops, bringing the total number of directly operated shops to 1,788. Sales in the direct retail channel, the core of the group's strategy, were down 16% on a comparable basis. The wholesale and other revenue segment saw a decline of 9%. Specifically, wholesale sales of the group's brands fell 23% on a comparable basis, reflecting the strategy of strengthening distribution exclusivity. In contrast, Kering Eyewear and Kering Beauté grew by 2%, while royalties and other revenues increased by 11%.
The individual brands
.Particularly notable was the drop in sales recorded by Gucci during the period: the brand posted a drop of 25% to 1.571 billion from 2.079 billion. Direct (retail) sales, which accounted for 91% of the total, contracted by 25% at comparable rates, against a backdrop of low shop traffic, continuing the progressive strengthening of the offer. Indirect (wholesale) sales decreased by 33% at comparable rates.
