Kering Sees 16% Revenue Decline in H1 2025, But Beauty Shows Resilience

Kering reported a 16% revenue decline to €7.6 billion (£6.5 billion) in the first half of 2025. Despite challenges in the overall luxury market, growth in beauty products suggests the sector remains resilient.

While sales trends in North America and Asia Pacific improved compared to the first quarter, performance in Western Europe and Japan weakened, primarily due to a significant decline in tourism.

Sales at its main fashion brands declined significantly; however, the beauty division remained relatively resilient, with revenue growing by 9% in the first half of 2025. Revenue reached €150 million (£129 million), driven by "strong" demand for Creed women's fragrances.

Kering acquired Creed in 2023 as part of its ongoing commitment to strengthening its position in prestige beauty. Earlier this year, Kering appointed Nathalie Berger-Duquene as CEO, replacing Sarah Rotheram, who left the fragrance brand at the end of October.

Looking ahead, Kering stated that it remains focused on executing its strategy to build a path to sustainable, profitable long-term growth.

François-Henri Pinault, Chairman and CEO of Kering, said: "The first half of 2025 will be a period of significant decision-making for Kering. Both operationally and financially, in a particularly difficult market environment, we continue to streamline our distribution and cost base and, in line with our roadmap, take decisive measures to strengthen our financial structure. While our reported figures remain well below our potential, we are convinced that the comprehensive efforts of the past two years have laid an excellent foundation for the next phase of Kering's development."