Gucci sales, which make up nearly half of total group revenues, plunged 25% over the quarter to 1.46 billion euros.
📉 1. Q2 Sales Collapse: Gucci Slumps 25%
Gucci’s Q2 sales fell by 25% year-over-year, reaching approximately €1.46 billion, undershooting analyst expectations and further dampening Kering’s performance ReutersMarketScreenerSherwood News.
On a group level, Kering’s total revenues dropped 15% to €3.7 billion, compared to a 14% decline in its challenging Q1 ReutersVogue BusinessMarketScreener.
🌍 2. Regional Slowdown: China & U.S. Pain Points
Demand in Asia–Pacific collapsed by 25%, especially in China and Japan.
Western Europe and North America each posted a 13% sales decline, signaling broad weakness across major luxury markets .
U.S. trade tensions via newly imposed tariffs are putting added pressure on European luxury exports, including Gucci ReutersFinancial Times.
🏗 3. Gucci: Kering’s Crown Jewel in Crisis
As Kering’s flagship brand, Gucci contributes ~60% of profits. Its continued deterioration is a direct drag on the group’s financial health mintnss magazineMarketScreener.
Creative turmoil has compounded troubles: Gucci has undergone multiple artistic director changes, most recently appointing Demna Gvasalia to reboot the brand’s direction .
⚙️ 4. Corporate Strategy & Leadership Shake-Up
Luca de Meo, former Renault CEO credited with previous industry turnarounds, will take the helm of Kering in September 2025, aiming to rescue struggling labels like Gucci and Saint Laurent, and tackle Kering’s €10.5 billion debt Vogue Businessbusinessinsider.com.
Executives plan workforce rationalization, brand consolidation, and tighter cost control as part of restructuring efforts investing.combrandequity.economictimes.indiatimes.com.
📦 5. Market & Macro Challenges
The global luxury goods sector is expected to shrink by 2–5% in 2025, as geopolitical instability, inflation, and trade uncertainty weigh on discretionary spending apnews.comReutersReuters.
Brand fatigue, overpricing, and weaker middle-income demand have led luxury brands like Gucci to reconsider aggressive price hikes that alienated aspirational shoppers Financial TimesReuters.
📊 Quick Recap
| Metric | Details |
|---|---|
| Gucci Sales Drop | 25% year-over-year in Q2 (~€1.46B) |
| Group Revenue Decline | 15% fall to €3.7 B |
| Regional Weakness | Asia-Pacific down 25%; U.S. & EU down 13% |
| Strategic Response | New CEO Luca de Meo; restructuring underway |
| Industry Outlook | Global luxury down 2–5%; shift toward lower-price goods and beauty |
🧠 Bottom Line
Gucci’s steep sales decline is more than a brand hiccup—it reflects systemic challenges at Kering and underscores vulnerabilities in the broader luxury model. With its core brand floundering and economic headwinds intensifying, shareholders are watching closely as the newly appointed leadership looks to stabilize the empire and reignite growth. Recovery hinges on brand consistency, strategic cost discipline, and reconnecting with luxury consumers.
