Kering’s less-than-promising Q1 results recently sent waves of disappointment through the luxury industry as the French conglomerate reported revenues plunging 14% year over year. The results put a particular focus on already troubled brand Gucci, which experienced a sharp 25% drop in sales, underscoring the brand’s ongoing struggles to resonate with consumers. Meanwhile, brands like YSL also saw a 9% decrease in sales. Kering attributed much of its ongoing troubles to weak overall performance in China and North America among other regions. “Analysts were already worried about luxury in 2025, and given the macroeconomic environment and global uncertainty, I am expecting weak sales throughout the year,” Wendy Zajack, adjunct faculty at Georgetown University’s McDonough School of Business, who specializes in luxury goods and marketing, told Retail Brew in an email. While Kering may have anticipated the results, it has tried to make some unexpected moves to respond to challenges, namely its appointment of Demna as the creative director at Gucci. But will the decision—likely aimed at revitalizing the flailing brand’s appeal, especially among younger consumers—work in its favor in the long run? Most analysts remain cautiously optimistic. Keep reading here.—JS | 
