Is this another step into the abyss? The luxury giant is in serious trouble.

The Kering Group — owner of luxury brands such as Gucci, Yves Saint Laurent and Bottega Veneta — reported a significant decline in sales and profits in the first half of 2025.

The Kering Group , owner of brands like Gucci , Yves Saint Laurent , and Bottega Veneta , has released its financial results for the first half of 2025—and they're hardly optimistic. Revenue fell by 15% , and net profit dropped by a staggering 46% , reaching just under €500 million.

Meanwhile, in September, Luca de Meo, previously known for his successful transformation of Renault, will take over the brand's reins . His task now will be to repair the image and performance of one of the most important players in the global luxury sector.

Gucci, a luxury fashion house owned by the Kering Group, is a boutique / Unsplash, Dima Pechurin

Gucci , Kering's absolute crown jewel and the brand that generates almost half of the group's revenue, saw a 26% drop in sales (to $3 billion). Despite attempts to redefine its identity and refresh its collections, the brand has failed to regain its former glory. Furthermore, its new era—under Demna's name —won't begin until March 2026.

Yves Saint Laurent , although it finishes the podium in the LYST ranking as the most desirable brand in the second half of 2025, recorded a drop in revenue by 11%, to €1.29 billion .

Against this background , Bottega Veneta performs well, maintaining growth at 2%.

External factors are adding to the brands' problems, including new 15% tariffs on products imported from the EU to the US , introduced by the Trump administration on August 1st. This could further impact margins, especially in the US market, which is a key market for Kering . CEO François-Henri Pinault has announced reorganization, cost cutting, and distribution restructuring.

Kering isn't alone – LVMH is also slowing down, but Hermès, as usual, is at the top. It's worth noting that the problems aren't unique to Kering . Even the market leader, the LVMH group, saw its net profit drop by 22% during the same period. Only Hermès , a long-standing symbol of timeless luxury and masterful craftsmanship, is maintaining a stable course.

Will Luca de Meo breathe new life into Kering ? The group's future will depend on whether it manages not only to win back lost customers but also to redefine the concept of luxury.