The latest numbers from Kering SA paint a tough picture for its crown jewel, Gucci. In the second quarter, sales at the iconic Italian fashion house slumped by 25% — a stark figure that’s rattled industry watchers but didn’t come as a total shock. Analysts had expected a steep drop, and Kering delivered exactly that. Across the board, the group’s revenue also dropped 15%, reflecting broader challenges in the luxury sector.
But Gucci’s troubles run deeper than just a slowing market. There’s been a sense of uncertainty hanging over the brand for a while now. It’s now in the middle of its second major design overhaul in just three years. When you’re trying to keep pace in luxury fashion, that kind of instability tends to show up in the numbers.
The brand’s new creative lead is Demna — known widely for transforming Balenciaga with a sharp, disruptive style. Yet despite his reputation, his first full Gucci collection is still under wraps. The debut won’t hit runways until March at Milan Fashion Week, though we’ll get a glimpse of what’s to come as early as September. Whether his vision can spark a Gucci revival remains the open question.
Meanwhile, big changes are also brewing in the executive suite. Luca de Meo, who earned his stripes by steering Renault SA through tough waters, is set to take over as Kering’s CEO in mid-September. Francois-Henri Pinault — part of the powerful Pinault dynasty behind Kering — will remain as chairman but step aside as CEO when de Meo comes in.
Investors seem to be cautiously optimistic. Since de Meo’s appointment was announced, Kering shares have bounced back by nearly 25%. Even with that rebound, the stock is still down about 11% for the year — so confidence is recovering, but far from restored.
According to Deputy CEO Jean-Marc Duplaix, de Meo is already talking strategy with Kering’s top brass. But any official roadmap or detailed vision for Gucci and the broader group probably won’t be unveiled until 2026. In the meantime, Kering is bracing itself for more bumps.
Financially, the situation is tight. Kering’s operating income for the first half of the year plunged 39%, down to €969 million. That’s just a bit above what analysts had forecast. The company is also trying to navigate shifting international trade dynamics — including a 15% U.S. tariff on European imports. But CFO Armelle Poulou brushed it off as “totally manageable” and hinted that price adjustments could continue into autumn.
It’s not just economic forces dragging on Gucci. The brand started losing steam before inflation and slowing Chinese demand began to bite. Alessandro Michele’s reign at Gucci was a golden era of maximalism and vibrant identity, but his once-daring designs eventually felt overstayed to many loyal shoppers. He exited nearly three years ago, leaving a creative vacuum that’s yet to be fully filled.
For now, the future of Gucci — and Kering by extension — hinges on whether Demna can deliver a compelling new identity for the brand, and whether de Meo can work his turnaround magic one more time. The next few seasons will be critical. Until then, the fashion house that once defined bold reinvention is still waiting for its next act to truly begin.