Kering, the luxury company that owns high-end brands like Gucci, Yves Saint-Laurent, and Bottega Veneta, has released its latest financial report for 2025. The report reveals that Gucci's total revenue has fallen by approximately 20%, contributing to a 13% decline in Kering's overall revenue. This downturn has been attributed in part to the closure of 75 stores last year, which the company undertook in an effort to reduce costs; however, it remains unclear how many of these were Gucci stores specifically.

Despite the drop in revenues, investor sentiment appears unaffected, as Kering's stock surged by 14% in early trading, according to reports from Ritzau. This increase in stock value indicates that investors may still have confidence in Kering's strategic direction and future recovery prospects, even in light of the challenging economic conditions impacting luxury goods sales.

The decline in sales at Gucci raises questions about the brand's market position and the broader luxury industry landscape. While the store closures indicate a tightening of Kering's operations, the robust stock performance suggests that the company is effectively managing investor expectations. Analysts will be closely watching how Kering navigates these challenges going forward, especially with competitors in the luxury sector also feeling the strain from a shifting consumer market.