French luxury group Kering reported a 10% decline in first-quarter revenue on a comparable basis, missing analyst expectations. The group's sales totaled β¬4.50 billion for the period, down from β¬5.08 billion a year earlier.
The performance was driven by a significant drop at its core brand, Gucci, where comparable sales fell by 18%. The brand, which accounts for nearly half of the group's revenue, is undergoing a major creative transition under new designer Sabato De Sarno.
Other houses within the group also faced challenges. Yves Saint Laurent sales decreased by 8% on a comparable basis, while Bottega Veneta saw a more modest 2% decline. The 'Other Houses' segment, which includes Balenciaga and Alexander McQueen, posted a 6% drop.
Kering's Chairman and CEO, François-Henri Pinault, acknowledged the "disappointing" start to the year. The company stated it is rigorously implementing its strategy to restore its houses to stronger, more sustainable growth trajectories, with a focus on enhancing the appeal and exclusivity of its products.
