Following yesterday’s release of Kering’s figures for the three months ending 30 September 2025; Chloe Tedford-Jones, appaaAnalyst at GlobalData, a leading data and analytics company, offers her view: “While Kering’s Q3 FY2025 sales fell 9.8%, the pace of its decline eased compared with earlier quarters, pointing to early signs of operational and market stabilization. Despite this relative improvement, Kering underperformed rival LVMH, as its fashion and leather goods sales dropped 4.2% in Q3 FY2025, highlighting underlying issues with brand desirability within Kering, most notably at Gucci where previous creative direction has failed to resonate with the brand’s core audience.
“Japan was Kering’s the weakest market in Q3, with comparable sales down 16%, though this was against strong comparatives in the prior year, as the strengthened Japanese yen deterred tourists who previously flocked to the country to purchase luxury goods at lower prices. Asia Pacific’s comparable sales also dropped, though by a slightly more modest 10%, as consumer demand for luxury remains subdued, especially in China. Western Europe comparable sales declined 7%, a marked improvement from the 17% drop seen in Q2 FY2025, as inflation stabilized, and consumer sentiment started to improve. Rest of World saw comparable sales rise 2%, driven by emerging markets with an increasing appetite for luxury in the Middle East. The group’s best performing region was North America, where comparable sales rose 3%, finally turning positive after 11 consecutive quarters of decline and reflecting a renewed brand appeal amid improving economic conditions.
“Gucci weighed heavily on group results, with reported sales down 18.2% and a negative currency impact of 5%. Nonetheless, Q3 shows a marked improvement on the previous quarter, which is likely to continue, as new creative director Demna’s ‘La Famiglia’ collection starts hitting stores, with its limited run in October likely bolstering Q4 results. The appointment of Francesca Bellettini as Gucci’s CEO in September 2025 also underscores Kering’s push to refresh the brand’s identity and reposition it for a new audience post-luxury slowdown.
“Yves Saint Laurent declined more modestly, down 7.5%, supported by an improving North American performance and a slower rate of decline in Western Europe. Recent collections drove growth in Ready-to-Wear and Shoes, though a leather-goods refresh has yet to lift overall sales. Bottega saw a slight reported decline of 1%, but comparable sales rose 3%, helped by Louise Trotter’s debut collection resonating with ultra-wealthy consumers. The group’s other brands, which includes Alexander McQueen and Balenciaga, fell 5.0%, though comparable sales rose 1%, mainly driven by jewellery. Kering’s Eyewear & Corporate division was a relative bright spot, with reported growth of 1.8% and comparable sales up 7%, aided by the high demand for luxury eyewear. Kering also decided to sell its beauty division to L’Oréal in October 2025 to reduce the group’s high debt load and refocus on its core luxury activities.”
