Core Viewpoint - Kering Group, a major player in the luxury goods sector, reported a significant decline in both revenue and net profit for the first half of 2025, mirroring trends seen in other luxury brands like LVMH [1][2]. Financial Performance - Kering Group's revenue decreased by 16% year-on-year to €7.587 billion, while net profit fell by 46% to €474 million [1]. - For the second quarter, revenue also dropped by 16%, surpassing the decline seen in the first quarter [1]. - Gucci's revenue fell by 26% to €3.027 billion, with a second-quarter decline of 27% [1]. - YSL's revenue decreased by 11% to €1.288 billion, with a second-quarter drop of 13% [1]. - BV (Bottega Veneta) showed a slight growth of 1% to €846 million, but its second-quarter revenue fell by 1% [1]. Regional Market Analysis - No region reported year-on-year growth, with the largest declines in the Asia-Pacific region and Japan, down 21% and 20% respectively [2]. - Western Europe and North America saw revenue decreases of 13% and 12% respectively [2]. - The sales share from the Asia-Pacific region dropped by 3 percentage points to 29% [2]. Brand Performance and Strategy - Gucci's contribution to Kering's revenue has decreased from over 50% to 40% in the first half of the year [3]. - Gucci has experienced six consecutive quarters of declining comparable sales, with declines ranging from 21% to 25% [3]. - Kering closed 24 stores in the first half of the year, including 18 Gucci stores [3]. Future Outlook and Leadership Changes - Kering Group is seeking to adapt to market changes and has appointed Luca de Meo as the new CEO, effective September [4]. - The luxury sector is expected to remain a key player in high-end consumption, but brands must innovate and enhance customer service to reverse sales declines [4]. - Experts suggest that luxury brands need to embrace a shift towards de-branding and focus on consumer engagement rather than traditional branding [4].