Runway vs. Revenue: Kering Q1 2025 – In Reset Mode
Strategic turbulence or necessary transition? Kering's Q1 shows a luxury giant rebalancing its foundation.
From Soft Landing to Strategic Pause
Kering reported revenue of €3.88 billion in Q1 2025, down 14% year-over-year — both on a reported and comparable basis. The results, though expected, mark a continued deceleration for the group amid global uncertainty and internal recalibration.
Declines were broad-based, with retail revenue down 16% and wholesale down 9%, particularly impacted by a significant -25% retail drop in Asia-Pacific. Directly operated store count declined by 25 units this quarter — a tangible signal of streamlining.
House by House: Mixed Signals
Gucci
-25% revenue decline YoY, with both retail and wholesale under pressure
New product launches like the Softbit bag line were well received
Key development: Demna appointed as Artistic Director, signaling a bold reset after De Sarno
Saint Laurent
Revenue down -9%, but retail showed resilience in Europe & the Middle East
+20% growth in Royalties & Other revenues — a small but meaningful uptick
Accessories refresh underway, with traction expected in upcoming quarters
Bottega Veneta
One of the few bright spots: +4% revenue growth, driven by strong retail performance
Growth seen across all product categories, with double-digit expansion in Western markets
Proof that cultural resonance and selective distribution work when paired with brand relevance
Other Houses
Overall revenue down -11%, though jewellery brands showed strength:
Pomellato and Qeelin up significantly
Brioni posted double-digit retail growth, driven by Europe and North America
Balenciaga showed resilience in leather goods but faces creative transition —
👉 Kering is expected to announce Demna's successor at Balenciaga in the coming weeks, marking another chapter in its house-by-house repositioning.
A Strategic Interlude
Chairman & CEO François-Henri Pinault stated clearly:
“We are fully focused on executing on our action plans... and I am convinced that we will come out stronger from the present situation.”
This quarter was less about financial performance — and more about repositioning. From the real estate monetization deal with Ardian (€837M) to the sale of The Mall Luxury Outlets to Simon Group, Kering is clearly decluttering, refocusing, and preparing to re-accelerate.
Conclusion
Kering’s Q1 was challenging — but not aimless. The group is signaling a strategic reset: new creative leadership, realigned portfolios, and operational tightening across its houses.
In an industry driven by perception, Kering is betting on patience. And as we’ve seen before, a recalibrated Kering can move fast — when the moment is right.
