Gucci’s challenges put Kering in a tough spot

The challenge: Gucci’s glow is fading—and it’s dragging parent company Kering down with it.

  • The iconic brand, which drives roughly 40% of Kering’s revenues, saw sales plunge 25% YoY in Q1 to 1.57 billion euros ($1.78 billion), falling short of analyst expectations.
  • It’s not just Gucci feeling the heat. Yves Saint Laurent posted a 9% decline, and most of Kering’s other houses also underperformed.