Kering Sa Unsponsored ADR ( (PPRUY) ) has released its Q2 earnings. Here is a breakdown of the information Kering Sa Unsponsored ADR presented to its investors.
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Kering SA, a prominent player in the luxury goods sector, is known for its portfolio of high-end fashion brands including Gucci, Yves Saint Laurent, and Bottega Veneta, as well as its strategic focus on sustainability and innovation. In the first half of 2025, Kering reported a significant decline in revenue and profits, with a 16% drop in revenue to €7,587 million and a 46% decrease in net income attributable to the Group. The company attributed these declines to a slowdown in the luxury market, particularly in Asia-Pacific and Japan, and adverse currency effects.
Key financial metrics revealed a challenging period for Kering, with recurring EBITDA down 23% and recurring operating income falling by 39%. Gucci, the Group’s flagship brand, experienced a 26% revenue drop, while Yves Saint Laurent and Bottega Veneta showed more resilience with smaller declines and slight growth, respectively. Strategic moves included a real estate transaction with Ardian and the sale of The Mall Luxury Outlets, which contributed positively to the Group’s free cash flow, which increased by 126%.
Despite the tough market conditions, Kering made several strategic announcements, including the appointment of new artistic directors at Gucci and Balenciaga and the publication of its first Water Strategy, aiming for a net positive impact by 2050. The Group also issued a €750 million bond to enhance financial flexibility and appointed Luca de Meo as the new CEO, marking a significant governance shift.
Looking ahead, Kering remains committed to its long-term strategy of enhancing brand exclusivity and sustainability. The management is focused on navigating the current market challenges while positioning the Group for future growth through strategic investments and operational efficiencies.