Kering Reports Q3 2025 Revenue Decline, Focuses on Growth

Kering's Q3 2025 Revenue Update

Kering, a renowned luxury group, recently released its third-quarter revenue, revealing a notable decline in sales. The company's commitment to improving its brand performance continues to drive strategic changes in response to market challenges.

Overview of Third Quarter Performance

The reported group revenue for Kering in the third quarter of 2025 was €3.415 billion, reflecting a 10% decrease compared to the same quarter last year, with a 5% dip on a comparable basis. This marks a significant strategic shift as the company aims to recover from previous declines and capitalize on market opportunities.

CEO's Insights on the Revenue Decline

Kering's CEO, Luca de Meo, emphasized the importance of revitalizing the brand and restoring its position in the luxury market. The slight sequential improvement from the previous quarter of a 15% decline demonstrates potential opportunities for recovery. De Meo expressed his dedication to turning around the situation by implementing a comprehensive plan across all dimensions of the business.

Revenue Breakdown by Channels

In examining the revenue sources, a few critical trends arose:

• Sales through the directly operated retail network decreased by 6% on a comparable basis, although this signifies an improvement from a 16% decline in the previous quarter.
• Wholesale and other revenues experienced a modest decline of 2% on a comparable basis, highlighting varying performance across different sales channels.

Kering's Strategic Focus Areas

For the first three quarters of 2025, Kering’s revenue totaled €11 billion, a decrease of 14% year-over-year. This trend has prompted Kering to sharpen its focus on particular brands, such as Gucci and Yves Saint Laurent, and to innovate product lines that resonate with consumers.

Brand Highlights

Gucci reported revenues of €1.3 billion in the third quarter, representing an 18% decrease overall. However, strong improvements in North America and new product launches have provided a silver lining. Meanwhile, Yves Saint Laurent generated €620 million in revenue, down 7%, yet new collections have seen a favorable reception, particularly in North America.

Future Outlook

Kering is not merely reacting to current challenges; it is also proactively preparing for a future where it can thrive within the luxury market landscape. By reassessing its product offering and enhancing brand experiences, Kering aims to rekindle consumer interest and drive growth. This includes investing in market-leading initiatives that focus on beauty and other luxury segments, as shown in their collaboration with L'Oréal to explore future growth opportunities in the wellness sector.

Summary

Overall, Kering's third-quarter report encapsulates both the challenges faced and the strategic initiatives being implemented to overcome them. While the revenue decline is notable, the company’s measures reflect a proactive approach aimed at revitalizing its operations and enhancing shareholder value.

Frequently Asked Questions

What was Kering's revenue for Q3 2025?

Kering reported a revenue of €3.415 billion for Q3 2025, showing a 10% decline compared to the previous year.

How did the CEO respond to the revenue decline?

CEO Luca de Meo expressed determination to improve the brand's market position and implement strategic changes for turnaround.

What were the main drivers for revenue declines?

Key drivers included a drop in retail sales and challenges in the wholesale segment, compounded by currency effects.

Which brands contributed to Kering's revenue?

Gucci and Yves Saint Laurent were major contributors, with Gucci generating €1.3 billion and Yves Saint Laurent €620 million in Q3 2025.

What future strategies is Kering pursuing?

Kering plans to innovate product offerings and enhance brand experiences, focusing on growth in wellness and beauty through partnerships.

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