Weak Sales From Gucci And Yves Saint Laurent Push Kering Shares to 2025 Lows

Shares of Kering (KER.FR), which is responsible for brands such as Gucci and Yves Saint Laurent, are down 5% today after Q1 results fell short of expectations. Gucci sales fell 25% in the first quarter. Efforts to revive Kering SA’s biggest brand have shown no signs of turning around amid a difficult period for the luxury goods industry.

“We believe 2025 will be another painful transition year for Gucci,” analysts at Cit wrote in a note. Remember, the brand accounts for almost 60% of the company’s total profits.

Selected Quarterly Results:

• Gucci like-for-like revenue -25%, estimated -23.6%
• Yves Saint Laurent like-for-like revenue -9%, estimated -8.03%
• Bottega Veneta like-for-like revenue +4%, estimated +7.71%
• Other Fashion Houses like-for-like revenue -11%, estimated -7.18%
• Eyewear and Corporate like-for-like revenue +3%, estimated +5.84%
• Revenue €3.88bn, -14% y/y, estimated €4.09bn
• Gucci revenue €1.57bn, -24% y/y, estimated €1.62bn
• Yves Saint Laurent revenue €679m, -8.2% y/y, estimated €690.7m EUR
• Bottega Veneta revenues EUR 405m, +4.4% y/y, estimated EUR 423.2m
• Other House revenues EUR 733m, -11% y/y, estimated EUR 775.8m
• Eyewear and corporate revenues EUR 558m, +4.1% y/y, estimated EUR 574.4m

Kering is “planning cautiously” for Q2 and continues to expect a double-digit revenue decline for the group; it still believes the second half of the year should be better than the first half.

Kering (KER.FR) shares are trading at their lowest levels since 2015. Source: xStation

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