Core Insights - Kering reported a significant decline in revenue for the first half of 2025, with total revenue of €7,587 million, down 16% as reported and 15% on a comparable basis [4][39] - The company is undergoing a leadership transition, appointing Luca de Meo as CEO while François-Henri Pinault remains Chairman [1][38] - Kering is focusing on enhancing the desirability of its brands through new creative leadership and operational efficiency [1][25] Financial Performance - Recurring operating income for the first half of 2025 was €969 million, a decrease of 39% compared to the same period in 2024 [5][39] - Net income attributable to the Group was €474 million, down from €878 million in the first half of 2024 [21][40] - Free cash flow from operations reached €2.4 billion, bolstered by €1.3 billion from real estate transactions [22] Segment Performance - Gucci's revenue fell to €3,027 million, down 26% as reported and 25% on a comparable basis, with a recurring operating income of €486 million [6][8] - Yves Saint Laurent generated €1,288 million in revenue, down 11% as reported and 10% on a comparable basis, with a recurring operating income of €262 million [9][10] - Bottega Veneta's revenue increased slightly to €846 million, up 1% as reported and 2% on a comparable basis, with a recurring operating income of €127 million [11][12] - Revenue from Other Houses was €1,459 million, down 15% as reported and 14% on a comparable basis, resulting in a recurring operating loss of €29 million [13][15] Market Trends - Sales from the directly operated retail network decreased by 16% on a comparable basis, with notable declines in Japan (-29%) and Western Europe (-17%) [4][4] - The second quarter of 2025 saw a revenue decline of 18% as reported, with a 15% decrease on a comparable basis [4][48] - The company is experiencing mixed performance across regions, with North America showing a decline of 10% and Asia-Pacific down 19% [4][4] Strategic Initiatives - Kering is committed to enhancing its financial structure and operational efficiency amid challenging market conditions [1][25] - The company is investing in the development of its Houses to strengthen brand desirability and exclusivity [23][24] - Kering Eyewear is pursuing strategic acquisitions to consolidate its position in the luxury eyewear market [36][37]
Kering: Press release - First-half 2025 results
Globenewswire·2025-07-29 15:45