{"id":182609,"date":"2025-07-30T09:00:00","date_gmt":"2025-07-30T07:00:00","guid":{"rendered":"https:\/\/www.parisselectbook.com\/2025\/07\/30\/kering-in-freefall-what-repercussions-for-the-paris-luxury-goods-industry\/"},"modified":"2025-07-30T10:34:27","modified_gmt":"2025-07-30T08:34:27","slug":"kering-in-freefall-what-repercussions-for-the-paris-luxury-goods-industry","status":"publish","type":"post","link":"https:\/\/www.parisselectbook.com\/en\/2025\/07\/30\/kering-in-freefall-what-repercussions-for-the-paris-luxury-goods-industry\/","title":{"rendered":"Kering in freefall: what repercussions for the Paris luxury goods industry?"},"content":{"rendered":"\n<p><strong>The Kering Group is going through a difficult period, with sales down -15% for the first half of 2025. This situation has a direct impact on the luxury ecosystem, particularly in Paris. <\/strong><\/p>\n\n<p>The turmoil continues for French luxury giant <strong>Kering<\/strong>. In the first six months of <em>2025<\/em>, the Group posted sales of <strong>7.6 billion euros<\/strong>, down <strong>-15%<\/strong> on the same period last year. Operating income recurring fell to <strong>969 million euros<\/strong> (-39%), while net income plateaued at <strong>474 million euros<\/strong>. A worrying situation in a context where the global luxury goods market is contracting.   <\/p>\n\n<p>In Paris, a city emblematic of luxury, this underperformance has a particular resonance. Many of the Group&#8217;s flagship brands &#8211; <strong>Gucci<\/strong>, <strong>Saint Laurent<\/strong>, <strong>Balenciaga<\/strong> and <strong>Boucheron<\/strong> &#8211; are located in the capital. An overall drop in business for these brands could mean <strong>less footfall in their Parisian stores<\/strong>, and potentially adjustments in staffing or local strategy.  <\/p>\n\n<h2 class=\"wp-block-heading has-text-align-center\">Gucci, Kering&#8217;s weak link<\/h2>\n\n<p>The biggest concern is <strong>Gucci<\/strong>, whose sales plunged by <strong>-25%<\/strong> to <strong>3 billion euros<\/strong>. In Paris, the Marais and Avenue Montaigne stores have not been spared. The collapse in sales in the directly-operated network<strong>(-24%<\/strong>) and in Wholesale<strong>(-42%<\/strong>) confirms the <strong>disaffection of key customers<\/strong>, notably Asian. The creative reorganization entrusted to <strong>Demna<\/strong>, ex-Artistic Director of Balenciaga, will have to convince rapidly.   <\/p>\n\n<h2 class=\"wp-block-heading has-text-align-center\">Saint Laurent and Bottega: contrasting dynamics<\/h2>\n\n<p><strong>Yves Saint Laurent<\/strong>, the Parisian pillar of the group with its HQ on rue de Bellechasse, saw a <strong> 10%<\/strong> drop in sales. The retention of <strong>Anthony Vaccarello<\/strong> as artistic director marks a desire for stability, despite the current <em>mercato<\/em> in the luxury goods industry. <strong>Bottega Veneta<\/strong>, on the other hand, posted a timid <strong>+2%<\/strong> growth, avoiding the general downturn. A sign that <strong>its discreet, timeless image still appeals to a demanding clientele<\/strong>.   <\/p>\n\n<h2 class=\"wp-block-heading has-text-align-center\">What&#8217;s the outlook for the luxury capital?<\/h2>\n\n<p>The drop in sales in <strong>Western Europe (-17%)<\/strong> and <strong>Japan (-29%<\/strong> ) is due in particular to weaker tourist flows, as Kering points out. Paris, where luxury tourism is crucial, is therefore seeing <strong>its role as an international crossroads weakened<\/strong>. It remains to be seen whether the arrival of <strong>Luca de Meo<\/strong> as CEO will reverse this trend. His experience at Renault could bring a healthy dose of pragmatism to an industry that is currently on its last legs.   <\/p>\n\n<p>Also read: <a href=\"https:\/\/www.parisselectbook.com\/en\/2025\/07\/28\/lvmh-plans-to-sell-marc-jacobs\/\">LVMH considers selling Marc Jacobs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Kering Group is going through a difficult period, with sales down -15% for the first half of 2025. This situation has a direct impact&#8230;<\/p>\n","protected":false},"author":3,"featured_media":182603,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2996],"tags":[],"quartier":[],"class_list":["post-182609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kering in freefall: what repercussions for the Paris luxury goods industry?<\/title>\n<meta name=\"description\" content=\"The Kering Group is going through a difficult period, with sales down -15% for the first half of 2025. 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