Kering experiences substantial losses due to shifts in leadership and creative restructuring

In a significant shake-up, luxury conglomerate Kering appointed new CEOs at Saint Laurent, Balenciaga, and Gucci in 2024. However, the company is currently grappling with a challenging reality in its two main luxury markets, China and the United States.

China's consumers are preferring to save rather than spend on luxury, while the US market is experiencing political unpredictability that is affecting consumer confidence. As a result, Kering's revenue for the first half of fiscal 2025 declined 16% year over year to 7.6 billion euros.

The second quarter was particularly tough for Kering, with retail sales down 16% year over year. The decline was evident across all regions, with North America seeing a 10% drop, Asia-Pacific down 19%, Western Europe sales sinking 17%, and Japan retail sales falling a staggering 29%.

The biggest problem for Kering is at Gucci, where losses continue to deepen following last year's steep revenue declines. For the first half of fiscal 2025, Gucci's revenue declined 26% to 3 billion euros, and first half recurring operating income nosedived 51% year over year.

In an effort to turn things around, Demna Gvasalia was appointed as the new artistic director of Gucci in March. Pierpaolo Piccioli was named as the new creative director at Balenciaga in May, and Louise Trotter was hired as creative director at Bottega Veneta in 2024.

Stefano Cantino was appointed as the new CEO of Gucci effective January 1, 2025. However, there are no publicly announced new CEOs for Saint Laurent or Balenciaga by Kering in 2024 or 2025. Luca de Meo became the CEO of the Kering group itself in September 2025, but not specifically the CEO of the individual brands Saint Laurent or Balenciaga.

Despite the challenges, Bottega Veneta managed to buck the trend, with revenue for the period rising 1% to 846 million euros. This small increase offers a glimmer of hope for Kering as they navigate through these tough times.

As the luxury market continues to evolve, Kering will need to adapt and innovate to regain its footing and restore consumer confidence in its iconic brands.