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Kering slumps as Gucci revenue plunges 22% and group swings to 2025 loss
| USA | economy

Kering slumps as Gucci revenue plunges 22% and group swings to 2025 loss

#Kering #Gucci #Luxury market #Revenue slump #Financial results #China demand #Operating loss

📌 Key Takeaways

  • Gucci's comparable revenue dropped by 22%, severely impacting Kering's overall financial health.
  • Kering warned of a potential operating loss for the first half of 2025 due to ongoing market volatility.
  • The slump is primarily driven by weak demand in China and the challenging repositioning of the Gucci brand.
  • The group expects its 2025 recurring operating income to be significantly lower than 2024 levels.

📖 Full Retelling

The French luxury conglomerate Kering SA reported a significant financial downturn on Wednesday as its flagship brand, Gucci, experienced a staggering 22% plunge in comparable revenue during the fourth quarter of 2024. This sharp decline in performance across major global markets led the group to forecast a substantial operating loss for the first half of 2025, reflecting the deepening challenges within the high-end fashion sector. The parent company, led by CEO François-Henri Pinault, attributed the volatility to a combination of cooling demand in the crucial Chinese market and a difficult transition period as Gucci attempts to move upmarket with new creative direction. The disappointing results highlight a widening gap between Kering and its primary rivals, such as LVMH and Hermès, who have managed to maintain higher levels of resilience despite a global slowdown in luxury spending. Gucci, which traditionally accounts for two-thirds of Kering’s operating profit, has struggled to regain its footing under the creative leadership of Sabato De Sarno. Investors have expressed growing concern over the brand's ability to reconnect with aspirational shoppers while simultaneously trying to attract a more exclusive, ultra-wealthy clientele during a period of high interest rates and geopolitical uncertainty. In response to the fiscal crisis, Kering executives emphasized a strategy focused on cost-cutting measures and a long-term overhaul of its distribution network to prioritize brand exclusivity. However, the immediate outlook remains bleak, with the group warning that full-year recurring operating income for 2025 could drop by nearly half compared to the previous year. This news sent Kering’s shares tumbling on the Paris stock exchange, as analysts readjusted their expectations for a recovery in the luxury goods market, which is currently grappling with normalized growth patterns following the post-pandemic boom.

🏷️ Themes

Luxury Goods, Economy, Fashion

📚 Related People & Topics

Gucci

Gucci

Italian luxury fashion house

# Gucci (Guccio Gucci S.p.A.) **Guccio Gucci S.p.A.**, operating under the brand name **Gucci**, is a premier Italian luxury fashion house headquartered in Florence, Tuscany. Renowned globally for its craftsmanship and influence, the house represents a pinnacle of Italian heritage and contemporary ...

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Luxury goods

Luxury goods

Good for which demand increases more than what is proportional as income rises

In economics, a luxury good (or upmarket good) is a product or item or service for which demand increases more than what is proportional as income rises, so that expenditures on the good become a more significant proportion of overall spending. Luxury goods are in contrast to necessity goods, where...

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Kering

Kering

French multinational corporation

Kering S.A. (French: [kɛːʁiŋ]) is a French multinational holding company specializing in luxury goods, headquartered in Paris. It owns the brands Gucci, Yves Saint Laurent, Balenciaga, Bottega Veneta, Creed, Maui Jim, and Alexander McQueen, among others. The timber-trading company Pinault S.A. was f...

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Kering stock surges 11% on better-than-expected Q4 Gucci results Author Navamya Acharya Earnings Published 02/10/2026, 01:21 AM Kering stock surges 11% on better-than-expected Q4 Gucci results 0 PRTP -2.88% Investing.com -- Kering SA (EPA:PRTP) reported fourth-quarter results that exceeded analyst expectations, sending shares up more than 11% on Tuesday as the French luxury group outlined plans to return to growth in 2026 after a bruising year for flagship brand Gucci. The owner of Gucci, Saint Laurent and Bottega Veneta posted fourth-quarter revenue of €3.91 billion, down 3% on a comparable basis. The decline marked an improvement from the 5% drop in the third quarter. Gucci’s comparable sales fell 10% in the quarter, matching the prior period’s decline after eight consecutive quarters of deterioration. The brand generated €1.62 billion in quarterly revenue. For the full year, Gucci posted €5.99 billion in sales, down 19% on a comparable basis. Get real-time market-moving headlines and analyst alerts on InvestingPro - up to 50% off Morgan Stanley analysts said the results came in "slightly better than expected," with Gucci’s full-year operating profit 8% above consensus estimates. The brokerage estimated group earnings before interest and taxes exceeded expectations by about 3% on a pro-forma basis. " Kering enters 2026 with a clear objective: to return to growth and improve margins this year," the company said. Saint Laurent delivered flat comparable growth in the fourth quarter at €735 million, rebounding from declines in prior quarters. Bottega Veneta posted its highest qu...

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