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Kering released its third-quarter 2025 financial results on Thursday, showing it reduced the slump it had seen in the previous quarter. The French luxury goods house, which owns brands like Balenciaga, Gucci, and Yves Saint Laurent, reported 3.42 billion euros ($3.97 billion) in group revenue, down 5% year-over-year (YOY) compared to a 15% drop in quarter-two. It also beat Wall Streets estimate of a 9.6% decline, according to consensus estimates cited by Reuters. Kering attributed the reduced revenue YOY, in part, to a negative currency effect of 5%. Luxury is in a lull As a whole, luxury brands have struggled in recent years, with blame boomeranging between factors like changing desires among young consumers, a domino effect from the COVID-19 pandemic, and a downturn in Chinaone of luxurys biggest markets. At Kering, Gucci, specifically, was still in a lull, though it saw an improvement over quarter twos 25% drop. The brand just beat its predicted revenue of 1.32 billion euros ($1.53 billion), with 1.34 billion euros ($1.56 billion) and a 14% decline YOY, according to consensus estimates cited by CNBC. Fashion designer Demna took over as Guccis artistic director in July after a decade in the same role at Balenciaga. Yves Saint Laurent had a 4% decrease in revenue YOY, while other parts of the business saw an uptick in YOY revenue: Bottega Veneta is up 3% and Kering Eyewear is up 7%. The new boss is not especially happy with the results Kerings third-quarter performance, while representing a clear sequential improvement, remains far below that of the market, Kering CEO Luca de Meo said in a statement. This reinforces my determination to work on all dimensions of the business to return our Houses and the Group to the prominence they deserve. We are working relentlessly on our turnaround, as shown by our recent decisions. De Meo, previously the chief executive of automotive giant Renault, took the helm at Kering on September 15, most of the way through quarter three. Former CEO François-Henri Pinault stayed on as chairman of the board of directors. Kerings shares (EPA: KER) were up 8.7% at close on Thursdaya high for 2025before falling over 4% during trading on Friday. The earnings report comes only a few days after Kering announced the all-cash sale of its beauty division to LOreal for 4 billion euros ($4.6 billion). That deal is expected to close in the first half of 2026 and gives LOreal ownership over the House of Creed high-end fragrance company and licenses for brands including Balenciaga, Bottega Veneta, and Gucci. Kering will receive royalty payments from LOreal. The latter has owned the beauty license for Kerings Yves Saint Laurent, since 2008.
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E-Commerce
Alaska Airlines said its operations have resumed Friday after it had to ground its planes for hours because of an information technology outage. The airline said in a statement that 229 flights were canceled because of the outage and that more flight disruptions were expected as it worked to reposition aircraft and crews. Alaska Airlines said it is working on getting travelers affected by the disruption to their destinations. It asked that passengers check their flight status before heading to the airport. The grounding Thursday affected Alaska Air and Horizon Air flights. Hawaiian Airlines, which was bought by Alaska Air Group last year, said its flights were operating as scheduled. In July, Alaska grounded all of its flights for about three hours after the failure of a critical piece of hardware at a data center. There has been a history of computer problems disrupting flights in the industry, though most of the time the disruptions are only temporary. The story has been updated to correct the time element of operations resuming to Friday, from Thursday, and the day of the grounding to Thursday, from Wednesday.
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E-Commerce
President Donald Trump announced he’s ending “all trade negotiations” with Canada because of a television ad opposing U.S. tariffs that he said misstated the facts and called “egregious behavior” aimed at influencing U.S. court decisions.The post on Trump’s social media site came Thursday night after Canadian Prime Minister Mark Carney said he aims to double his country’s exports to countries outside the U.S. because of the threat posed by Trump’s tariffs. Trump’s call for an abrupt end to negotiations could further inflame trade tensions that already have been building between the two neighboring countries for months.Trump posted, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”“The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts,” Trump wrote on his social media site. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”Carney’s office didn’t immediately respond to a request for comment. The prime minister was set to leave Friday morning for a summit in Asia, while Trump is set to do the same Friday evening.Trump, a Republican, was still at it on Friday morning, furiously posting on his social media site that “CANADA CHEATED AND GOT CAUGHT!!!” on the tariff ad.“THE UNITED STATES IS WEALTHY, POWERFUL, AND NATIONALLY SECURE AGAIN, ALL BECAUSE OF TARIFFS!” he wrote in a separate post on his Truth Social account. “THE MOST IMPORTANT CASE EVER IS IN THE UNITED STATES SUPREME COURT. GOD BLESS AMERICA!!!”Earlier Thursday night, the Ronald Reagan Presidential Foundation and Institute posted on X that an ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.”The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.As for the Supreme Court, Trump is referring to a case scheduled for early November in which the justices will consider the legality of his sweeping tariffs. Two lower courts have determined that Trump cannot unilaterally impose wide-ranging tariffs under an emergency powers law. His administration argues otherwise, saying he can regulate importation and that includes tariff policy.Carney met with Trump earlier this month to try to ease trade tensions, as the two countries and Mexico prepare for a review of the U.S.-Mexico-Canada Agreement, a trade deal Trump negotiated in his first term but has since soured on.More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian ($2.7 billion U.S.) worth of goods and services cross the border daily. Trump said earlier this week that he had seen the ad on television and said that it showed that his tariffs were having an impact.“I saw an ad last night from Canada. If I was Canada, I’d take that same ad also,” he said then.In his own post on X last week, Doug Ford, the premier of Ontario, posted a link to the ad and the message: “It’s official: Ontario’s new advertising campaign in the U.S. has launched.”He continued, “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”A spokesperson for Ford didn’t immediately respond to a request for comment Thursday night. But Ford previously got Trump’s attention with an electricity surcharge to U.S. states. Trump responded by doubling steel and aluminum tariffs.The president has moved to impose steep U.S. tariffs on many goods from Canada. In April, Canada’s government imposed retaliatory levies on certain U.S. goods but it carved out exemptions for some automakers to bring specific numbers of vehicles into the country, known as remission quotas.Trump’s tariffs have especially hurt Canada’s auto sector, much of which is based in Ontario. This month, Stellantis said it would move a production line from Ontario to Illinois Associated Press writers Seung Min Kim in Washington and Rob Gillies in Toronto, Ontario, contributed to this report. Will Weissert, Associated Press
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