Kering (KER) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €3,883 million, down 14% year-over-year on both reported and comparable bases, reflecting a challenging macro environment and weakened consumer confidence.

• Retail sales declined 16% on a comparable basis, with Asia-Pacific down 25% and Western Europe, North America, and Japan each declining between 11% and 13%.

• Store footprint was reduced by 25 units in Q1, with a focus on higher quality locations and more exclusive distribution.

• Management remains focused on executing strategy, deleveraging the balance sheet, closing stores, and tightening CapEx and OpEx.

• Weak traffic and subdued consumer appetite persisted across all regions, with limited sequential deceleration from Q4.

Financial highlights

• Retail (including e-commerce) accounted for 73% of revenue, down 16% year-over-year; wholesale and other channels made up 27%, down 9%.

• Group revenue: €3,883 million in Q1 2025 vs. €4,504 million in Q1 2024, a 14% decrease year-over-year.

• Gucci revenue was €1.6 billion, down 24% reported and 25% comparable; Saint Laurent €679 million, down 8% reported and 9% comparable; Bottega Veneta €405 million, up 4% reported and comparable.

• Other Houses' revenue was €733 million, down 11% reported and comparable; jewelry houses showed robust to outstanding growth.

• Kering Eyewear and Beauté revenue rose by 2% and 6% respectively on a comparable basis.

Outlook and guidance

• Q2 is expected to see another double-digit revenue decline year-over-year, but potentially slightly better than Q1.

• H2 is anticipated to be better than H1, with cautious planning amid ongoing uncertainty.

• Gross margin expected to stabilize and possibly improve in H2, but not in H1; OpEx to be stabilized or reduced for the full year.

• Management remains focused on executing action plans to achieve strategic and financial objectives amid macroeconomic headwinds.

• Strategic initiatives include reinforcing and rejuvenating product offerings, especially at Gucci and Saint Laurent.