Kering reported revenues fell 14 percent to 3.88 billion euros in the first quarter of 2025, dragged down by low store traffic and weak wholesale numbers at Gucci, where sales dropped 25 percent on a comparable basis.

The numbers trailed the performance of Kering’s larger luxury rivals LVMH Moët Hennessy Louis Vuitton, which reported a 3 percent dip in first-quarter revenues to 20.31 billion euros, and Hermès International, which bucked the trend and delivered a 7.2 percent improvement to 4.13 billion euros.

Kering reported double-digit declines across all regions in the first quarter of the year, with Asia-Pacific down 25 percent, in line with the last three months of 2024, the company noted.

However, Western Europe and North America fell 13 percent, and Japan 11 percent, representing a sequential deceleration.

Demna succeeds Italian designer Sabato De Sarno, who exited last February after a two-year collaboration that failed to ignite sales.

De Sarno’s collections were met with mixed reviews and his timeless take on signature pieces did not gain enough traction at retail for a turnaround.

On Wednesday, Kering trumpeted a “promising launch” for Gucci’s new Softbit line as the brand “strengthens and updates its product range.”