Gucci's 25% Sales Plunge Drags Kering's Revenue Down 14%

Kering, the parent company of Gucci, is facing an escalating crisis as the luxury brand's sales have plummeted by 25% in the first quarter, totaling €1.6 billion. This significant decline in revenue has far exceeded expectations and has raised concerns about the company's future prospects. The weak performance at Gucci, which accounts for half of Kering's group sales, has been a major contributor to the group's overall 14% drop in revenue. Despite efforts to ignite a turnaround, Kering has struggled to reverse the downward trend, with no signs of improvement in sight. The company has even hinted at potential job cuts as it grapples with the deepening crisis.

Analysts have warned that the situation could worsen by the end of 2025, as the luxury market continues to face challenges and competition from other high-end brands. The company's high-end eyewear division has also reported a decline in sales, adding to the overall financial strain. Kering's inability to stabilize its biggest brand has raised questions about its leadership and strategic direction, as it seeks to navigate the current crisis and secure its position in the luxury market.