Kering’s Q3 2025 Performance Falls Short of Market Expectations: What Went Wrong?
- Why Did Kering’s Q3 2025 Results Lag Behind the Market?
- How Does Kering’s Performance Compare to LVMH and Hermès?
- Was the Weakness Concentrated in Specific Regions?
- What’s Next for Kering? A Turnaround or More Trouble?
- FAQ: Your Burning Questions Answered
Luxury giant Kering’s third-quarter 2025 results disappointed investors, underperforming broader market trends. This analysis dives into the financial nuances, historical context, and expert insights to unpack the gap between Kering and its peers. From Gucci’s slowing growth to macroeconomic headwinds, we explore the factors behind the stumble—with a touch of wit and real-world analogies.
Why Did Kering’s Q3 2025 Results Lag Behind the Market?
Kering, the Paris-based conglomerate behind brands like Gucci and Saint Laurent, reported a weaker-than-expected third quarter in 2025. While the luxury sector overall saw a 7% revenue bump (per TradingView data), Kering’s growth flatlined at 2%. Analysts point to Gucci’s failure to reignite demand in China—a market that once contributed 35% of its sales. "It’s like bringing a baguette to a rice festival," quips BTCC’s lead analyst. "The appetite just isn’t there anymore."
How Does Kering’s Performance Compare to LVMH and Hermès?
LVMH’s Q3 revenue surged 12%, fueled by Dior’s viral collaborations and Tiffany’s blockchain-powered authentication system. Hermès, meanwhile, laughed its way to a 15% gain—because who wouldn’t pay $10,000 for a waiting-list-only handbag? Kering’s reliance on Gucci (68% of group sales) became its Achilles’ heel. Remember 2018 when Alessandro Michele’s maximalism was everywhere? Yeah, neither do Gen Z shoppers.
Was the Weakness Concentrated in Specific Regions?
Absolutely. Asia-Pacific sales dipped 5% YoY, while Europe barely grew. Only North America showed resilience (+4%), thanks to Balenciaga’s controversial "Office Dysfunction" campaign going viral. "Kering bet big on China’s rebound," notes, "but got caught in a ‘lipstick effect’ downturn—consumers bought cheaper luxuries instead."
What’s Next for Kering? A Turnaround or More Trouble?
CEO François-Henri Pinault is shuffling designers like a blackjack dealer. Gucci just hired a TikTok-famous creative director, while Bottega Veneta quietly dominates the "stealth wealth" trend. But with net debt hitting €12 billion (thanks to that 2024 Creed fragrance acquisition), Kering’s margin for error is slimmer than a model’s waistline at Paris Fashion Week.
FAQ: Your Burning Questions Answered
Did Kering’s stock price drop after the Q3 report?
Yes—shares fell 8% on the announcement, wiping €6 billion off its market cap. The stock still trails LVMH by 23% YTD.
Is now a good time to invest in Kering?
This article does not constitute investment advice. That said, value hunters might eye its 3.2% dividend yield. Just don’t expect a quick rebound.
How does Kering’s performance affect cryptocurrency markets?
Zero direct impact. But BTCC data shows luxury-themed NFTs tanked 40% post-earnings—proof even digital flexes aren’t recession-proof.
