Unpacking Kering’s Earnings
Today, Kering, the luxury conglomerate that owns Gucci, Yves Saint Laurent, Balenciaga, and Bottega Veneta, among others, reported its first quarter earnings, and the picture of the luxury industry it paints is even more dire than many thought. Overall sales are down by 14%, Gucci’s sales for the first three months of 2025 are down by 25%, as Kering’s biggest brand flounders in the wake of a creative director reshuffling. At Yves Saint Laurent, its second biggest brand, sales are down 9%. Frustratingly, Kering does not break out Balenciaga’s earnings, as it lumps them into “Other Houses,” which include McQueen, Brioni, and a handful of jewelry brands they own. But Kering dropped a couple of hints in its earnings report.