Core Viewpoint - Kering Group reported a significant decline in net profit and sales for the first half of 2025, indicating ongoing struggles in the luxury goods market, particularly with its flagship brand Gucci [1][2]. Financial Performance - Kering's net profit fell by 46% to €474 million in the first half of 2025, down from €878 million in the same period of 2024 [1]. - Sales decreased by 16% to €7.6 billion in the first half of 2025 [1]. - Gucci's sales dropped by 26% to €3 billion, compared to over €4 billion a year earlier [2]. Brand Performance - The performance of Kering's brands varied, with Saint Laurent's revenue declining by 11% to €1.288 billion, while other brands saw a 15% drop to €1.459 billion [1]. - Bottega Veneta experienced a 1% revenue increase to €846 million, contributing 11% to the group's total revenue [1]. - Kering's eyewear and beauty segments grew by 2% to €1.092 billion, with beauty revenue increasing by 9% [1]. Market Conditions - The luxury goods market is facing a slowdown, with weakened consumer confidence and adverse currency fluctuations impacting tourism [2]. - The Asia-Pacific region (excluding Japan) and Japan experienced the most significant declines in sales [2]. - A strong euro negatively affected Kering's revenue growth by nearly 1% [2]. Strategic Changes - Kering appointed Demna, formerly of Balenciaga, as the creative director for Gucci in hopes of revitalizing the brand [2]. - Gucci's spring/summer women's fashion show scheduled for September has been postponed to March next year, with a new collection set to be launched [2]. Tariff Implications - The U.S. and EU have agreed to impose a 15% tariff on European products exported to the U.S., which could impact Kering's sales in North America, accounting for 24% of its revenue [3]. - Kering's CFO stated that the impact of tariffs is manageable and may lead to price adjustments in the fall [3].