Kering Sales Drop, Regional Weakness and Store Closures

Kering reported a 14% year-on-year revenue decline in the first quarter to €3.88 billion, missing analyst expectations and reflecting persistent challenges in the luxury sector. Gucci sales plunged 25%, surpassing negative forecasts amid weak store traffic and wholesale demand. Sales dropped across all major regions, with Asia-Pacific down 25% and Western Europe and North America each falling by low double digits. Bottega Veneta achieved a 4% sales increase, and Kering Eyewear also recorded gains, contrasting with broader brand struggles. Kering closed 25 stores and reiterated its focus on operational streamlining and strategic brand repositioning to address ongoing challenges. Despite these efforts, the company continues to lag behind rivals LVMH and Hermès, who reported stronger performance.