Aug 11 (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.