A Gucci logo will be exhibited in Washington, DC, on May 30, 2025.
Kevin Carter | Getty Images News | Getty pictures
Gucci owner Kering achieved worse results in the second quarter on Tuesday and marked the ongoing geopolitical uncertainty because the problems with the besieged luxury group remain.
The sales in the high-end fashion house fell on a comparable basis compared to the previous year on a comparable basis to 3.7 billion euros ($ 4.27 billion) compared to the 3.96 billion euros forecasted by LSEG analysts.
The Gucci turnover, which usually makes up almost half of the total sales of the groups, rose by 25% to 1.46 billion euros over the quarter.
The chairman and CEO François-Henri Pinault recognized the results as disappointing, but determined the continuing efforts to correct the fighting luxury giants.
“Although the numbers we report are far below our potential, we are sure that our comprehensive efforts have determined healthy foundations for the next phases of the development of Kering in the past two years,” said Pinault in an explanation that accompanied the results.
“In an economic and geopolitical environment that remains uncertain, Kering continues to use his strategy with the aim of reaching a profitable long -term growth curve,” added the company.
The group, which also belongs to the brands Saint Laurent and Bottega Veneta, said that sales in all markets, led by Japan and in the further Asian -Pacific area, were weaker.
“Kering faces a tough reality, since the two main luxury markets of China and the United States are under stress,” said Yanmei Tang, analyst at Third Bridge, shortly after the prize was published in comments by e -mail.
New leadership in focus
Kering's share price has currently dropped by 8%, since investors have questioned the company's ability to turn over soft sales after several successive quarters.
The appointment of the auto veteran Luca de Meo to the CEO from Auto -Veteran in June brought positive dynamics, whereby his appointment came into force from September 15th.
“[De Meo] Has a really strong track record when turning around companies, but also in branding “Carole Madjo, head of European luxury goods research at Barclays, told CNBCs” Squawk Box Europe “last week.
The incoming CEO nevertheless has a difficult task in front of it, since the industry is exposed to new 15% scores for imports to the USA and more extensive concerns about consumer expenditure, especially on the most important Chinese market.
We can consider a second wave [of price hikes] in autumn.
Army Poulou
Kering Chief Financial Officer
The Chief Financial Officer Armelle Poulou said on Tuesday that the tariff set of 15% corresponded to the assumptions and “would be manageable by price adjustments”.
“We can consider a second wave in autumn,” Poulou told a profit call. “[But] We will make sure that we use it intelligently, and consumer feelings. “
However, analysts suggest that the greater challenge will revive the company's image and desirability, including the new artistic director Demna Gvasalia from Gucci, but at the same time not to alienate the existing consumers.
The deputy CEO of Kering and the brand development manager, Francesca Bellettini, said that a “first indication of [Demna’s] The vision for Gucci “would come from the collection in early 2026 in September.
“The desirability of the products is now a bigger problem for king than any risk of tariff,” said Tang. “Ready brands like Hermès can control prices higher without affecting demand, but brands like Saint Laurent and Gucci are currently not enjoying this price level.”
“New new, something fresh, which has not yet been seen, is what Gucci could do great again,” added Madjo.
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