Anticipated figures for tomorrow - how severe will the impact?
In the world of luxury fashion, Kering, the company behind popular brands like Gucci, is bracing for a challenging quarter. According to recent analyst forecasts, Kering's Q2 2025 revenue is expected to drop by around 15% year-over-year, reaching approximately €3.7 billion.
This anticipated decline aligns with the company's first half 2025 results, which showed a 16% drop in revenue to €7,587 million and a 46% decrease in net profits. These figures suggest significant market challenges affecting Kering's performance.
For the full year 2025, analysts expect the negative trend to persist due to ongoing market headwinds, a lack of recovery in flagship brand Gucci, and ineffective product refresh strategies. This suggests no clear turnaround in growth or profitability within the year.
The outlook for Kering's profitability is equally grim. A significant decrease in profits is expected for the full year 2025, with no sign of recovery.
In summary, the forecast for Kering's Q2 2025 financial performance indicates no improvement from Q1 2025 and no sequential momentum recovery. The full-year 2025 outlook suggests a continued decline, with revenue and profit forecasts likely to be substantially lower than previous years, reflecting a challenging luxury sector environment.
Analysts do not anticipate growth in both revenue and earnings for Kering until 2026. Despite the recent rise, Kering's stock remains heavily battered. The company is projected to earn a total of 812.2 million euros this year, a significant decrease from the previous year's 1.3 billion dollars.
This assessment is based on recent earnings reviews, company announcements, and analyst commentary from July 2025. It's important to note that while DER AKTIONÄR's favorite stocks in the sector remain LVMH and Hermès, the management and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Förtsch, has positions in financial instruments related to companies mentioned in the publication, which could benefit from the price development resulting from the publication.
[1] Company earnings review, Q1 2025 [2] Analyst report, Q2 2025 forecast [3] Company announcement, Q1 2025 results [4] Analyst commentary, full year 2025 outlook [5] Analyst report, Q2 2025 outlook and full year 2025 outlook
The anticipated decline in Kering's Q2 2025 revenue to around €3.7 billion, as per recent analyst forecasts, signals a need for careful strategic planning in the realm of financing and investing for the company. Given the continued decline in revenues and profits, it is uncertain when Kering will experience growth in business, with analysts predicting no recovery until 2026.
