Core Insights - Kering Group reported a surprise in its third-quarter earnings, with sales performance exceeding Wall Street expectations despite a year-on-year decline [1] - The company's revenue for Q3 was approximately €3.42 billion, down about 10% year-on-year, but slightly above analyst expectations of €3.31 billion [1] - Same-store sales decreased by 5% in Q3, a significant improvement compared to a 15% decline in Q2, indicating a slowdown in the downward trend [1] Group Performance - Gucci: Q3 revenue was €1.342 billion, down 18% year-on-year, with same-store sales declining 14%, slightly better than the expected 15% drop [3] - Yves Saint Laurent: Q3 revenue was €620 million, down 7% year-on-year, with same-store sales down 4% [3] - Bottega Veneta: Q3 revenue was €393 million, down 1% year-on-year, with same-store sales increasing by 3% [3] Management Commentary - Kering's new CEO, Luca de Meo, noted a significant improvement in Q3 performance compared to Q2, although the overall results remain below market averages [1] - CFO Armelle Poulou expressed satisfaction with the recent creative direction changes at Gucci, which may help improve sales [2]

Group 1 - Kering Group reported a 16% year-on-year decline in revenue for the first half of 2025, totaling €7.587 billion, with recurring operating profit down 38.7% to €969 million and net profit down 46% to €474 million [2] - The core brand Gucci experienced a significant revenue drop of 26% year-on-year in the first half of 2025, generating €3 billion, with a 25% decline in the second quarter to €1.46 billion [2] - Gucci's poor performance has persisted for six consecutive quarters, with comparable sales declines of 21%, 20%, 25%, 24%, 25%, and 25% from Q1 2024 to Q2 2025 [2] Group 2 - Other brands under Kering also faced challenges, with Saint Laurent (YSL) revenue down 11% to €1.3 billion in the first half of 2025, and a 10% decline in comparable sales for the second quarter [2] - Only Bottega Veneta and Kering Eyewear achieved growth, with Bottega Veneta's revenue increasing by 1% to €846 million and Kering Eyewear's revenue growing by 2% to €1.092 billion, while Kering Beauty saw a 9% increase [2] - Kering's Chairman and CEO Francois-Henri Pinault acknowledged the underperformance and stated that the company is optimizing distribution channels and cutting costs to strengthen its financial structure [3] Group 3 - In the first half of the year, Kering closed 24 stores globally, including 18 Gucci stores, with 7 located outside Japan in the Asia-Pacific region [3] - As of June 30, Kering had a total of 1,789 stores worldwide [3]