Gucci -sales dive as Kering Label struggles to revive the question

(Bloomberg) – Gucci sales tumbled in the first quarter because the attempts to revive SA’s biggest brand did not produce signs of a turnaround. Sales fell by 25% at Gucci on a comparable basis, Kering in Paris said on Wednesday. Analysts expected a 24% drop. Kering, who also owns Yves Saint Laurent, Bottega Veneta and Balenciaga, gets more than 60% of its profit from Gucci, making a recovery of the sick label for the French group. The company, controlled by the billionaire Pinault family, considered Demna Gvasalia – known as Demna – as the next Gucci designer last month. Demna has spent a decade as the artistic director of Balenciaga, who oversaw strong growth with attention appearance such as the Triple S-Neakers, who are recognizable by their exaggerated size. But Gucci is a much larger brand, and to move to a new designer for the second time in about two years means that any turnaround will take time. “Demna is part of the group, he is already working with the teams at Gucci,” said CFO Povery Poulou on a call with reporters and refuses to confirm when he will reveal his debut collection for the label. The shares of Kering have fallen by 50% over the past year, a worse performance than opponents Richemont, Hermes and LVMH. In addition to the internal issues of jerking, the broader luxury market is stuck in a period of poor growth that is partly caused by Chinese buyers who hold purchases again. US rates and an increasing trade war have further obscured the prospects for the industry. Kering has “the ability to protect its margins through price increases” in the US, Poulou said, adding that the group still analyzes the initial tariff announcements. Even the more resilient luxury groups, such as LVMH Moëty Hennessy Louis Vuitton’s and Hermès International Sca, recently delivered disappointing results. In general, in the first quarter sales sales fell by 14%. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 23 Apr 2025, 09:34 pm Ist