Discussion: The State of Kering

[PDFSD]

PUCK NEWS 21 july 2025​

The Kering Waiting Game​

There was a lot of online speculation last week about Francesca Bellettini’s future at Kering.
(So much, in fact, that I had several Kering executives calling me, asking me what was up.) Is she staying? Is she going? Is she being reassigned?

Here’s what we know: Luca de Meo, Kering’s new C.E.O., doesn’t start until September, and I can’t imagine a world in which anything is decided before then—even if he’s already having preliminary conversations with executives about how things should be rejiggered.
The only certainty is that there will be change. It’s unlikely that Bellettini and Jean-Marc Duplaix stay in their deputy C.E.O. roles; the “no one is safe” feeling among executives is warranted.

But we also have to remember that industry expertise matters, and while de Meo can clean house to an extent, he still needs to employ people like Bellettini who understand how to run the business while he gets up to speed under chairman François-Henri Pinault.
At Gucci, the profit engine (but also the most troubled brand of the group), there is a feeling that the company still operates with too many layers of management, and that further streamlining is required.

Then there’s the fact that Demna’s first runway show will not occur until March 2026, which means another year and a half until his Gucci is fully realized in stores.

That’s not great news, on top of all the macro issues that Gucci (and everyone else) is facing. However, I’m told that Demna is already making changes, and there’s good feedback internally about the stuff that’s been produced.
And, from everything I’ve heard about the September non-fashion-show concept, there will be plenty to talk about.

 

[upNorth]

How some of these people still have their jobs is beyond my understanding.

 

[Frederic01]

According to information released today by Kering, Gucci’s sales in the first half of the year were down 25% on a like-for-like basis, dragged down mainly by the poor performance of the wholesale channel, with a 42% drop in sales. In direct distribution, Gucci sales fell by 24% from January to June. In total, Gucci closed the first half of the year with a turnover of €3,027 million, compared to €4,085 million in the same period of 2024.

Gucci’s operating margin was 20.4%, down 1.6 points. Recurring operating income was €486 million, down 52% compared to the first half of the previous year.

Yves Saint Laurent, the conglomerate’s second-largest brand, also worsened its performance in the first half, albeit at a more moderate pace. The brand’s sales came in at €1,288 million, down 11%, while recurring operating income fell 17% to €272 million.

Bottega Veneta is the only major Kering brand to avoid declines in sales. Sales through June were up 1% to €1,459 million, and operating income improved 5% to €127 million.

MODAES.COM/

 

[FashionPower]

YSL still underperforming? How many news like this do we need to read before Bellettini or someone from Kering start confronting Vaccarello and ask him to be actively involved in new bags design process?
It's been almost a decade from his appointment and he managed not to show a single bag on the runway under agreement with Bellettini. Fine with that when the brand was doing well, no one was complaining. But nowadays, he simply cannot afford to do this anymore as 90% of the brand revenues come from leather goods and the sales are in constant decline. Get it together Anthony.
How can they recover from this -11% in sales? By releasing more unwalkable (beautifully crafted though) high heels, leather cuissards for men and a RTW offering made for Instagram posts and movie stars?

 

[FashionPower]

LOL the Gucci results are an additional confirmation that the audience completely rejected the Ancora visions. FW24 and SS25 were decent collection but apparently they did not gain any kind of attention and people were simply not interested. Also I noticed that after the SS24 fiasco, the distribution and availability of runway pieces was heavily reduced. On the website you could barely find roughly 20% of the runway looks available to purchase? We're talking about 10 looks out of 50...even YSL with the cinema star who does not eat, drive, walk collections has more availability of runway pieces.
Major proof that nowadays it's very difficult to turn a collection into a commercial success without a substantial vision and the support of marketing.
I'm still thinking after two years...what were they expecting to achieve in terms of sales and financial results by showing on the runway, after almost a decade of Lallo extravaganza, a 3k Grey polyester hoodie with huge Gucci logo, unwalkable platform loafers, Jackie's with a cost reduction version clasp and bags that looked like design rejects from Guess?

 

[Avonlea]

He would need to change the whole approach to design (or maybe finally start to actually design). His collections are very "look" focused, good styling is what keeps it together. I can't imagine his models carrying a bag, maybe a sleek minaudiere or a clutch, but that's it. It's so far removed from reality.

 

[oioioi]

Other than unwalkable shoes, zero bag on the catwalk visibility, Anthony is one of the only brands offering almost an exclusively evening/night or special event type POV/aesthetic that's not a Couture/Red Carpet business - which is pretty much the opposite of where fashion is now. All the other brands are offering a mix of everyday separates as their aesthetics or in-store range.
I actually can't think of a single knitwear product of YSL (commercial or runway).
I wonder if any changes or push and pull will happen with Cedric.

 

[justpassingthrough]

 

[yslforever]

Other than unwalkable shoes, zero bag on the catwalk visibility, Anthony is one of the only brands offering almost an exclusively evening/night or special event type POV/aesthetic that's not a Couture/Red Carpet business - which is pretty much the opposite of where fashion is now. All the other brands are offering a mix of everyday separates as their aesthetics or in-store range.
I actually can't think of a single knitwear product of YSL (commercial or runway).
I wonder if any changes or push and pull will happen with Cedric.

Anthony has never managed to offer a full wardrobe, barely any daywear, and nothing for «working women » , like YSL Rive Gauche used to have.
I m old enough to remember Pilati being praised for his pant suits and tunics and his bags fitting laptops, which we used to see in every office.
Also not being able to jump on a trendy shoes wave in a decade. Not a fashionable micro-trendy sneaker or ballet save to save the face in a decade.

Somehow Gucci and YSL work on very different operating systems, Gucci with too much inventory, products, and lines and YSL with too few.

BV is the only one with a balanced mix of products.

 

[Frederic01]

The market is merely adjusting to what these conglomerates did with direct reference to the pricing strategy.

All of these brands took an aggressive “brand elevation” approach after the pandemic and essentially priced out the majority of their consumers. They thought that they could use the Hermes strategy, without giving any actual thought as to how long Hermes took to become what it is now.

Anyway, the market has shifted toward vintage and/or smaller and more niche brands like The Row, Khaite, etc etc. and even smaller than that.

I’m seeing that a lot in the menswear market for example. Seeing ASAP Rocky in Dior or a K-Pop Star in Gucci does not inspire anyone anymore to go and spend money in those respective stores. This is mainly due to the exorbitant pricing but also due to the cringe factor of being dressed in something that was a) orchestrated by a marketing and publicity team and b) gifted for free.

If anything these guys are seeing the runway shows, taking inspiration from the styling, and then sourcing those items through vintage and local brands.

 

[Kimihiro]

Anyway, the market has shifted toward vintage and/or smaller and more niche brands like The Row, Khaite, etc etc. and even smaller than that.

This. It doesn’t look cool anymore to be in designer labels. Partly the fault of these conglomerates overextending their greed. This course correction of more “design-intent” designers hopefully will restore some good will. The fashion proposition of things got lost, I mean even in the store experience buying in say Dior doesn’t feel special anymore. I also don’t believe that designer brands should be that big. Hermes is Hermes, but that’s it.

It’s dire when even in handbags, traditionally the more justifiable luxury purchase, I see more people gravitating towards brands like Polene or The Row in the higher end of things. When big designer brands became mainstream, the market flees to something more niche.

 

[yslforever]

The market is merely adjusting to what these conglomerates did with direct reference to the pricing strategy.

All of these brands took an aggressive “brand elevation” approach after the pandemic and essentially priced out the majority of their consumers. They thought that they could use the Hermes strategy, without giving any actual thought as to how long Hermes took to become what it is now.

Anyway, the market has shifted toward vintage and/or smaller and more niche brands like The Row, Khaite, etc etc. and even smaller than that.

I’m seeing that a lot in the menswear market for example. Seeing ASAP Rocky in Dior or a K-Pop Star in Gucci does not inspire anyone anymore to go and spend money in those respective stores. This is mainly due to the exorbitant pricing but also due to the cringe factor of being dressed in something that was a) orchestrated by a marketing and publicity team and b) gifted for free.

If anything these guys are seeing the runway shows, taking inspiration from the styling, and then sourcing those items through vintage and local brands.

Kering CFO did not exclude a Gucci price increase this fall...
Just WHO do they think they are ?

 

[PDFSD]

via linkedin

Why is no one talking about Saint Laurent?

Yesterday, Kering released its first half 2025 results. Saint Laurent reported a decline of around 10% in comparable sales, yet another negative quarter in a series that has now lasted for more than two years. And yet, almost no attention was paid to this result during the analyst call, where the majority of the questions were once again directed at Gucci.

It is a curious situation: just three years ago Saint Laurent appeared on track to reach the €5 billion annual revenue milestone in the medium term. Today, the brand is below €3 billion and on a negative trajectory, performing well below the market average and many of its peers.

From a brand image perspective, Saint Laurent remains at a very high level. Anthony Vaccarello’s creative direction continues to drive desirability through sharp, directional fashion shows and striking imagery. But it is more Vaccarello’s personal vision and taste coming through, rather than the development of a broader, coherent narrative about the brand. And this strength at the top of the brand pyramid does not seem to fully translate into the product offer.
The assortment in stores and online remains heavily focused on entry to premium leather goods with bold logos, a formula that worked extremely well in the late 2010s and in the immediate post Covid momentum, when aspirational consumers were seeking highly recognisable status symbols. That consumer segment, however, has shifted: today, value, in terms of quality, craftsmanship, and product substance, is becoming a stronger driver of purchasing decisions. And here lies the gap: the high level image delivered through fashion shows and campaigns is not always met by the product experience. This misalignment may explain why consumers are becoming less responsive, despite the brand’s image strength.

Saint Laurent’s trajectory is concerning and, in the context of the broader changes at Kering, this misalignment will likely need to be as one of the many key points on the agenda of Luca de Meo, the group’s new CEO.

 

[plentyofhorns]

via linkedin

Why is no one talking about Saint Laurent?

Yesterday, Kering released its first half 2025 results. Saint Laurent reported a decline of around 10% in comparable sales, yet another negative quarter in a series that has now lasted for more than two years. And yet, almost no attention was paid to this result during the analyst call, where the majority of the questions were once again directed at Gucci.

It is a curious situation: just three years ago Saint Laurent appeared on track to reach the €5 billion annual revenue milestone in the medium term. Today, the brand is below €3 billion and on a negative trajectory, performing well below the market average and many of its peers.

From a brand image perspective, Saint Laurent remains at a very high level. Anthony Vaccarello’s creative direction continues to drive desirability through sharp, directional fashion shows and striking imagery. But it is more Vaccarello’s personal vision and taste coming through, rather than the development of a broader, coherent narrative about the brand. And this strength at the top of the brand pyramid does not seem to fully translate into the product offer.
The assortment in stores and online remains heavily focused on entry to premium leather goods with bold logos, a formula that worked extremely well in the late 2010s and in the immediate post Covid momentum, when aspirational consumers were seeking highly recognisable status symbols. That consumer segment, however, has shifted: today, value, in terms of quality, craftsmanship, and product substance, is becoming a stronger driver of purchasing decisions. And here lies the gap: the high level image delivered through fashion shows and campaigns is not always met by the product experience. This misalignment may explain why consumers are becoming less responsive, despite the brand’s image strength.

Saint Laurent’s trajectory is concerning and, in the context of the broader changes at Kering, this misalignment will likely need to be as one of the many key points on the agenda of Luca de Meo, the group’s new CEO.

It doesn’t help that nearly all the bags have the Cassandre logo which at this point might as well be the Gucci marmont. Made for middle America moms.

 

[Phuel]

^^^ That logo on expensive midrange outlet merch is the only reason why Anthony’s YSL is Kering's fav child at the moment. If the brand and Kering were solely reliant on his tired xxxxxxl shoulder pads and all his 80s costumes, the brand would be deep in the red this instant and he’d be unemployed. He needs to be grateful and showcase the midrange outlet merch along side his lazy 3 looks in 101 colorways shows. Because when Demna debuts, Kerning won’t be so accommodating to his demands.

 

[oioioi]

I wonder who could replace Anthony if they wanted to in 1-2 years, the cinematic focus and SL productions is so tied to him.

 

[Phuel]

^^^ He’s an easy replacement in every way possible.

If they’re insistent on the expensive cinematics, just hire Fabien and his team for the campaigns-- and even show productions.

Always thought that Clare Waight Keller deserves a second chance with a corporation. She’s refined her pragmatic, commercial sensibility solidly since her tenure at Givenchy, while still absolutely capable of producing the high drama and high glamour that’s such an important component of the YSL brand. Another strong contender would be Catherine Holstein, who’s perfectly capable of transforming Anthony's tired costumes while pushing midrange logo’d merch into an attainable, accessible solid signature look and still offerings of investable and separates/footwear/accessories. Talents of their pragmatic sensibilities would be greatly welcomed at this point. Anthony’s shown he’s so painfully limited and beyond his measly 80s drag ball showing, he doesn’t have anything else to offer: His version of the classic Yves' sheer and bejewelled peasant blouses and dresses are admittedly lovely but hardly the stuff that’s supporting the brand. Tom did it much better anyway. And no doubt both Clare and Catherine could conjure that sort of staple in their sleep.

 

[PDFSD]

^^^ He’s an easy replacement in every way possible.

If they’re insistent on the expensive cinematics, just hire Fabien and his team for the campaigns-- and even show productions.

Always thought that Clare Waight Keller deserves a second chance with a corporation. She’s refined her pragmatic, commercial sensibility solidly since her tenure at Givenchy, while still absolutely capable of producing the high drama and high glamour that’s such an important component of the YSL brand. Another strong contender would be Catherine Holstein, who’s perfectly capable of transforming Anthony's tired costumes while pushing midrange logo’d merch into an attainable, accessible solid signature look and still offerings of investable and separates/footwear/accessories. Talents of their pragmatic sensibilities would be greatly welcomed at this point. Anthony’s shown he’s so painfully limited and beyond his measly 80s drag ball showing, he doesn’t have anything else to offer: His version of the classic Yves' sheer and bejewelled peasant blouses and dresses are admittedly lovely but hardly the stuff that’s supporting the brand. Tom did it much better anyway. And no doubt both Clare and Catherine could conjure that sort of staple in their sleep.

agree except for Clare Waight Keller & Catherine Holstein i am over these second tier creative directors.

 

[Frederic01]

This. It doesn’t look cool anymore to be in designer labels. Partly the fault of these conglomerates overextending their greed. This course correction of more “design-intent” designers hopefully will restore some good will. The fashion proposition of things got lost, I mean even in the store experience buying in say Dior doesn’t feel special anymore. I also don’t believe that designer brands should be that big. Hermes is Hermes, but that’s it.

It’s dire when even in handbags, traditionally the more justifiable luxury purchase, I see more people gravitating towards brands like Polene or The Row in the higher end of things. When big designer brands became mainstream, the market flees to something more niche.

Exactly! Which is a problem for these brands, because they just think people will continue to fawn over them and buy and buy and buy ad infinitum simply because the of the brand name. Those days are over.

A name like Anthony Vaccarello doesn't mean anything to the current consumer. He might be a fantastic art director and curator, but no one is running to the stores to buy YSL clothes or accessories because they are seeking out heritage or craftsmanship or any of that. The people that buy Saint Laurent by Anthony Vaccarello simply want to create social media moments and imitate the vibe of a Hailey Bieber. There is no integrity to any of it.

And I think people are starting to see that, how cringe and embarrassing these new consumers are, and they are running in the opposite direction towards niche and smaller scale brands with less hype. That is why Phoebe's clothes are gaining momentum. Her brand is very much the opposite of all that performative, social-media obsessed, narcissist movement that we are currently faced with.

 

[Kimihiro]

Brought up ad nauseam but it doesn’t help that Anthony isn’t really product oriented. The clothes just don’t feel designed it’s more of the vibe and the ‘vibe is not giving’ anymore.

His YSL worked before because it was an extension of Slimane, but after his breakthrough show they just ran away with it, Francesca Bellettini profiles about how YSL would be a megabrand and all, and the cracks began showing. It’s all a vapid parade of vibe. The bags used to save them but even with those bags there’s no design intent. It’s all cheaply branded. YSL used to have fabulous bags under Stefano and I know they tried since like last year but it’s not sticking. It’s so incongruent the whole thing.

They should try fix YSL too. It could be good. Maybe a separate designer for mens and womens after all it’s one of those brands whose vocabulary is vast and not just a single jacket or dress. They could be legitimate in menswear too and they were.