Once a symbol of bold opulence and trendsetting style, Gucci is now facing one of its toughest chapters. The Italian luxury powerhouse has reported another steep decline in sales, signaling that the brand is still struggling to reconnect with modern consumers and redefine its identity.
📉 Continuous Sales Decline
In the second quarter of 2025, Gucci’s sales dropped by 25%, matching the decline seen in Q1. This marks the fourth consecutive quarter of double-digit losses, a rare situation in the world of high fashion where brand equity is usually a safeguard against sharp downturns.
These results have also dragged down overall revenues for Kering, Gucci’s parent company, whose performance remains heavily reliant on the brand’s success.
🔍 What’s Behind the Slump?
Several factors are contributing to Gucci’s ongoing decline:
1. Creative Confusion
Gucci’s recent attempt to pivot toward a “quiet luxury” aesthetic under former creative director Sabato De Sarno did not resonate with its traditional customer base. The dramatic shift from flamboyant designs to minimalist pieces left many longtime fans disoriented.
Now, Kering has appointed Demna Gvasalia, known for his disruptive style at Balenciaga, to lead a creative reboot. His first full collection is expected in September 2025.
2. Falling Demand in Key Markets
Gucci has been hit especially hard in China, one of its most important markets. Sales in the region have dropped significantly due to economic uncertainty and a changing appetite for luxury goods.
Meanwhile, in the West, high inflation and changing consumer preferences have reduced spending on high-end fashion. Aspirational buyers are now more selective, often opting for timeless, understated luxury from brands like Hermès or Loro Piana.
3. Brand Identity Crisis
Fashion insiders say Gucci is struggling to define its place in a rapidly evolving market. Once a leader in bold, risk-taking designs under Alessandro Michele, the brand now seems unsure whether to cater to loyal maximalist fans or follow broader minimalist trends.
🔄 Can Gucci Recover?
Kering is taking steps to reverse the trend, including:
- Closing underperforming stores
- Cutting operational costs
- Rebuilding Gucci’s brand identity under new leadership
- Appointing Luca de Meo, former CEO of Renault, as the new CEO of Kering (starting September 2025)
However, analysts suggest that real recovery may not begin until late 2025 or 2026, depending on the success of upcoming collections and the broader state of the global luxury market.
✅ Final Thoughts
Gucci is not irrelevant—but it is undeniably out of fashion for now. Whether the upcoming transformation will bring the brand back to the forefront of the industry remains to be seen. For now, Gucci must balance innovation with authenticity to reclaim its status as a cultural and fashion icon.
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