Finance
S&P Global revises credit outlook for Gucci owner Kering to negative from stable
Published by Global Banking & Finance Review®
Posted on August 11, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 11, 2025
2 min readLast updated: January 22, 2026
S&P Global downgraded Kering's credit outlook to negative due to declining Gucci sales and weak performance in key markets.
By Matt Tracy
(Reuters) -S&P Global has revised its credit outlook for luxury goods group Kering S.A. to negative from stable, the ratings agency said on Monday, after sales of Kering's Gucci brand and other products declined in the first half of the year.
In a report on Kering's investment grade credit rating, S&P analysts highlighted weakening consumer demand for the French group's luxury apparel across key markets, most notably a 22% year-on-year decline in revenue in the Asia-Pacific and China.
The analysts added that Kering had underperformed peers such as LVMH, Dior and Hermes so far this year. Sales of Kering's flagship Gucci brand, which made up over half of its core earnings (EBITDA) last year, fell by a quarter in the first half of 2025, the analysts added.
S&P maintained Kering's long-term issuer credit ratings at BBB+, which lies toward the lower end of the high-grade ratings spectrum.
"The negative outlook reflects Kering's reduced rating headroom stemming from ongoing pressures in its operating performance, execution risks associated with the company's turnaround initiatives, amid a subdued industry environment," the analysts wrote.
Kering in June announced it appointed as its new CEO Luca de Meo, former CEO of French automaker Renault Group, who will take office in mid-September.
(Reporting by Matt Tracy. Editing by Mark Potter)
S&P Global revised Kering's credit outlook to negative from stable.
The negative outlook reflects Kering's reduced rating headroom due to ongoing pressures in its operating performance and execution risks related to turnaround initiatives.
Kering has underperformed peers such as LVMH, Dior, and Hermes so far this year, particularly with a significant decline in sales for its Gucci brand.
S&P maintained Kering's long-term issuer credit rating at BBB+, which is toward the lower end of the high-grade ratings spectrum.
Luca de Meo, the former CEO of Renault Group, was appointed as Kering's new CEO and will take office in mid-September.
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