Creed fragrances drive sales growth at Kering Beauté

Kering posted a 16% decline in revenue to €7.6 billion (£6.5 billion) for the first half of 2025, with an increase in beauty revenue suggesting resilience in this segment despite challenges in the wider luxury market. 

In the second quarter, the owner of Gucci, Bottega Veneta and Yves Saint Laurent saw revenue decrease 18%.

While sales trends improved in North America (-10%) and Asia-Pacific (-19%) compared to the first quarter, performance weakened in Western Europe (-17%) and Japan (-29%), largely due to a significant drop in tourism.

Sales across its major fashion houses largely declined; however, the beauty division remained relatively buoyant, with revenue rising 9% in the first half of 2025.

Revenue reached €150 million (£129 million), driven by "strong" demand for Creed’s women’s fragrances.

Kering acquired Creed in 2023 as part of its ongoing commitment to developing a strong position in the luxury beauty segment. It named Nathalie Berger-Duquene as CEO earlier this year, replacing Sarah Rotheram, who departed the fragrance brand at the end of October.

Looking ahead, Kering said it remains focused on executing its strategy to build a path toward sustainable and profitable long-term growth.

François-Henri Pinault, Chairman and CEO at Kering, said: "The first half of 2025 has been a period of momentous decisions for Kering.

"On the operational and financial fronts, in a particularly tough market environment, we continued to streamline our distribution and cost base, and, executing on our roadmap, we took decisive steps to strengthen our financial structure.

"Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development."

The trading update follows Kering’s recent appointment of former Renault CEO Luca de Meo as Chief Executive Officer, succeeding François-Henri Pinault.

Pinault, whose family controls the luxury group, has led the company since 2005, taking over from his father and Kering founder, François Pinault, nearly two decades ago.