Paris, France – Kering S.A., the global luxury group, today announced its financial results for the first quarter of the fiscal year 2025, revealing a robust performance marked by significant top-line growth and encouraging signs of recovery in key segments. The period, covering January 1 to March 31, 2025, saw the group achieve total revenues of €5.2 billion, representing a substantial increase of 7.8% on a comparable basis year-over-year.
This performance signals a positive trajectory for Kering, exceeding many analyst expectations and highlighting the effectiveness of strategic initiatives implemented across its diverse portfolio of luxury houses. The results underscore the luxury sector’s continued resilience, particularly among established brands with strong global recognition.
Gucci’s Pivotal Recovery Fuels Group Performance
A major driver behind Kering’s strong first quarter was the noticeable rebound at its flagship brand, Gucci. After facing headwinds in recent periods, the Italian luxury house posted a 5% increase in sales during Q1 2025. This growth is particularly significant as it marks Gucci’s first positive quarter in over a year, a critical turning point for the brand under new creative direction.
The positive momentum at Gucci is attributed, at least in part, to the impact of new collections introduced under Creative Director Sabato De Sarno. These collections, strategically rolled out globally, appear to be resonating with consumers, driving renewed interest and demand. The sequential improvement in Gucci’s performance is a key indicator that the strategic repositioning and creative refresh efforts are beginning to yield tangible results. Investors and market observers have keenly watched Gucci’s performance as a bellwether for Kering’s overall health, making this rebound a significant positive development.
The focus at Gucci has been on refining its product offering, enhancing the client experience across retail channels, and strengthening its brand narrative. The Q1 2025 results suggest these efforts are starting to gain traction, laying a foundation for potential sustained growth in the coming quarters.
Asia-Pacific Leads Regional Growth Surge
Regionally, Kering witnessed particularly strong performance in the Asia-Pacific market. Excluding Japan, which is reported separately, sales in the Asia-Pacific region climbed impressively by 15% on a comparable basis during the first quarter. This robust growth highlights the enduring strength of consumer demand for luxury goods across many countries in this dynamic region.
The surge in Asia-Pacific sales underscores the importance of this market for Kering’s overall strategy. Economic recovery, growing middle and affluent classes, and strong cultural appreciation for luxury brands continue to fuel expansion opportunities. The 15% increase indicates that Kering’s brands, including but not limited to Gucci, are successfully capturing market share and engaging consumers effectively in this key geographical area.
While specific country-level data was not detailed in the initial summary, the overall Asia-Pacific performance (excluding Japan) signals broad-based strength, likely driven by key markets such as Mainland China, South Korea, and Southeast Asia. Kering’s strategic investments in retail presence, digital capabilities, and targeted marketing campaigns in these markets appear to be paying significant dividends.
Leadership Confidence and Strategic Investments
Commenting on the first quarter results, Kering’s Chairman and CEO, François-Henri Pinault, expressed optimism regarding the group’s performance. Mr. Pinault stated that the results “demonstrate the effectiveness of strategic investments and strong global demand in key segments.”
This commentary from the leadership underscores the intentionality behind Kering’s recent actions. The strategic investments referenced likely encompass a range of initiatives, including enhancements to product design and quality, expansion and renovation of retail spaces, significant digital transformation projects to improve e-commerce and customer relationship management, and targeted marketing expenditures aimed at reinforcing brand desirability.
The emphasis on “strong global demand in key segments” suggests that while overall market conditions might vary, Kering’s core offerings and flagship brands continue to resonate with high-spending luxury consumers worldwide. This demand, coupled with effective execution of group strategy, has translated into the reported revenue growth.
Mr. Pinault’s remarks signal confidence in the group’s direction and its ability to navigate the evolving luxury landscape. The Q1 results provide early validation of the strategies being pursued, particularly the critical work underway at Gucci.
Broader Market Context and Outlook
The first quarter of 2025 saw the global luxury market continue to adapt to shifting consumer behaviors, geopolitical dynamics, and economic variations across regions. Kering’s performance suggests it is successfully navigating these complexities, leveraging the enduring appeal of its brands and the strength of key growth markets like Asia-Pacific.
While the focus is heavily on Gucci’s recovery, Kering’s portfolio includes other prominent houses such as Yves Saint Laurent, Bottega Veneta, and Balenciaga, along with a portfolio of jewelry and other luxury brands. The group’s overall 7.8% comparable growth indicates positive contributions from across the portfolio, even if the provided summary specifically highlighted Gucci and the Asia-Pacific region.
The strong start to 2025 sets a positive tone for Kering for the remainder of the year. However, the luxury market remains competitive, and challenges such as potential economic slowdowns in certain areas or shifts in consumer trends will require continued vigilance and strategic agility. Kering’s Q1 performance provides a solid foundation, suggesting its current strategic direction, particularly concerning revitalizing its largest brand and capitalizing on growth in vital markets, is proving effective.
In summary, Kering’s €5.2 billion revenue and 7.8% comparable growth in Q1 2025, significantly buoyed by Gucci’s 5% comeback and a 15% surge in Asia-Pacific (excl. Japan), present a compelling narrative of strategic execution leading to tangible financial results. The performance validates the group’s recent investments and reinforces confidence in its future prospects within the dynamic global luxury market.
