Gucci’s owner is digging out of its sales slump. The stock just hit a 2025 high

Kering released its third-quarter 2025 financial results, showing a reduction in the slump it had seen in the previous quarter. The company reported 3.42 billion euros in group revenue, down 5% year-over-year, which was better than the expected 9.6% decline. Kering attributed the reduced revenue to a negative currency effect of 5%. The luxury goods house, which owns brands like Balenciaga, Gucci, and Yves Saint Laurent, has struggled in recent years due to changing consumer desires and a downturn in China. Gucci, in particular, was still in a lull, with a 14% decline in revenue year-over-year, although it saw an improvement over the previous quarter. Yves Saint Laurent had a 4% decrease in revenue, while other parts of the business, such as Bottega Veneta and Kering Eyewear, saw an uptick in revenue. Kering's CEO, Luca de Meo, expressed his determination to work on all dimensions of the business to return the company to prominence. De Meo, who took the helm at Kering on September 15, was not satisfied with the results, stating that the company's performance remains far below that of the market. Kering's shares were up 8.7% at close on Thursday, but fell over 4% during trading on Friday. The company recently announced the all-cash sale of its beauty division to L'Oreal for 4 billion euros, which is expected to close in the first half of 2026 and will give L'Oreal ownership over several high-end fragrance companies and licenses for Kering's brands.