KERING (KER-FR) Profit Q1 2025

Shares Dry On Thursday, after the French group of luxury goods posted lower than expected sales in the first quarter, and pointed to further macroeconomic winds forward.

According to a report on Wednesday, the revenues from the fashion giant plunged at 14% compared to last year to 3.9 billion euros (4.4 billion), lower than € 4.01 billion.

Gucci sales, which make up almost half of the group’s total revenues, decreased by 25% on a comparable basis from 1.57 billion euros, as the brand’s attempt remains.

By 10:00 am in London, Kering’s shares decreased by 4.3%, after the shares initially stopped in the open market. Stocks of other luxury groups Richemont. Lvmh and Germes Also traded below.

The company’s general weakness was headed by a 25% decline in group sales sales, as well as 13% dive in both North America and Europe.

Caring Chairman and CEO François Henry Pino said the company had faced a “difficult start of the year” and emphasized further problems forward for the luxury sector.

“In this environment, we are fully focused on the implementation of our plans to achieve our strategic and financial goals and to strengthen the positioning of our homes in all our markets,” he said in a statement.

“We increase our vigilance to bring out macroeconomic winds that face our industry, and I am convinced that we will come out stronger from the current situation,” he added.

Kering last month named Demn Guasaly as Gucci New artistic directorIn his latest application, turn his sick chief label. However, the shares beat the meeting when investors are confused by the dispute over the previous work of Guasaly over the 2022 advertising campaign at the smaller Kering Label Balenciaga.

Gucci suffered several in a row of weak sales quarters as its projects have come out with buyers, and its high impact of the Chinese consumer noticed that it suffered greatly from a recent decline in a once profitable Asian market.

This happens against the background of a broader decline in the luxury market in recent years amid greater inflation and weaker economic conditions.

This landscape seemed to change at the turn of the year, and many fashion houses that report more optimistic profit in the fourth quarter. However, analysts previously warned that a Macroeconomic slowing caused by the tariff May prevent this recovery from going forward.

“The weaker world stock markets and wider economic uncertainty will weigh confidence, and we see that this is further postponed by the restoration of luxurious demand,” wrote Adam Cocral, a general analyst in retail trade in Deutsche Bank.

Expected that luxury brands would be more protected than other retailers From the immediate impact of tariffs, with high -class labels can usually transfer additional costs to wealthy consumers. However, analysts noted that brands with already weak sales, including Kering, may be less for this.

“We also note that brands can be slower to increase prices from the tariffs that take into account the weakening of customer sentiment and the overall elasticity of prices, which is the key difference between Kering and LVMH (LVMH was previously mentioned prices as the main lever),” – writes TD Cowen on Thursday’s note.