The Gucci-parent company posted a 15% decline in sales in the second quarter — painting a tricky picture for incoming CEO Luca de Meo, who is set to take over the reins at Kering in September.

Kering reported a 15% year-on-year decline in second-quarter sales, with its flagship brand Gucci experiencing a 25% drop in sales during the same period. The company is undergoing a transition, with a new CEO set to join and a new creative director at Gucci, but the turnaround has yet to materialize. 

Other luxury sector results included Hermes, which posted first-half net income in line with estimates and raised prices in the US, and L'Oreal, which missed second-quarter sales forecasts due to slower growth in Europe. The luxury sector is facing challenges, including changing consumer preferences in China and a broader slowdown in demand.

Luxury earnings: Kering's second-quarter numbers disappoint

Well, let's turn to the luxury sector. We've had three key releases from the luxury industry this morning. Hermes posting first half net income of 8 billion euros in line with estimates as it backed its full year. Guidance executive chair Axel Dumas revealed the group best known for its handbags and scarves raised prices by an additional 5% in the US, adding that it sees no change in trends in China. Really interesting. They've been able to push through those price hikes in the US. L'Oreal missed second quarter sales forecast posting a 2.4% increase as growth in Europe slowed more than expected. The cosmetics group saw a small rebound in the US and China, which helped offset weakness in other regions. Finally, caring posting worse than expected results in the second quarter, with sales falling 15% year on year. It revealed particular weakness in its flagship brand Gucci, where sales plunge 25% in the period. Charlotte, it feels like the conversation around caring is always about the turnaround at Gucci. Is it happening? Is it? Is it going well? Seems like they're just continuing to struggle. Yes, a bit more of the same. There for caring and the bar was quite low in terms of expectations. We know they are in a transition period and yet they still miss those expectations. Think of course the luxury slowdown, but also, you know, fashion being a cycle and brands coming in and out of favor and Gucci certainly being out of favor at the moment and the trend continues. Gucci sales down 25%. It's their biggest brand of caring that makes the bulk of revenue. So we know they brought in a new CEO. Look at the mail that will join in September. The CFO says they're already talking with him so they will hit the ground running when he joins the company. We know he's the turnaround guy coming from Renault, so we'll have to wait and see. We know there's a new creative director as well at Gucci, Demna. Interesting that they said that his first show won't be until March next year. There were some expectations that maybe it could be in September this year, but it will be delayed until next year. So, you know, the delay is a kind of newness and a new vision that might be for the brand. They said they will present some of elements of the vision in September, but the new collection and new products won't hit until much later on. So things are in place potentially for a turnaround, but in the meantime, things are still tough. Not just at Gucci, Yves Saint Laurent down 10% as well. So it's across the board, the difficulties that they have. But here again, bad news, but we kind of know by the bad news, we know that things are put in place for a turnaround, but the shares are still very much underperforming in the sector. It does look like a Gucci problem still. If you look at how the Japan numbers performed, minus 29% sequentially, and they talk about a drop in tourism. That was just not evident in the Omaze numbers where you did actually still see strength in that business up 16%. So in some ways, this does still feel like a Gucci problem. Yeah, and from what you hear from a lot of the luxury players, companies at the moment say, the way the Chinese buyer is buying luxury is changing. They're being more assertive, they're picking their pieces more, maybe a bit less splashing of the logo. It seems as if there's a change on that front as well. So all these players have to adapt to a changing demand.

U.S. President Donald Trump slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

Rio de Janeiro

Global Tariffs

Trump hits Brazil with tariffs, sanctions but key sectors excluded

Widespread damage from tsunami waves after one of the strongest earthquakes ever recorded appears to have been largely avoided. Experts say this event should be used to gauge disaster preparedness for a more serious situation in the future.

Okinawa

Tsunami damage less severe than feared after Russian earthquake

Prime Minister Mark Carney announced that Canada will recognize a Palestinian state later this year if the Palestinian Authority, which governs parts of the West Bank, meets certain conditions.

Ottawa

Middle East Conflict

Canada to recognize Palestinian state in September if conditions met

Australia said on Wednesday (July 30) it will add YouTube to sites covered by its world-first ban on social media for teenagers, reversing an earlier decision to exempt the Alphabet-owned video-sharing site and potentially setting up a legal challenge.

Canberra

Australia expands teen social media ban to YouTube

President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

Washington

Trump says U.S. to hit India with 25% tariff starting August 1

Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

Ozzy Osbourne fans flood Birmingham streets to mourn late music icon

U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

Trump says Epstein 'stole' young women from Mar-a-Lago spa

Owdeh Hathaleen, a 31-year‑old Palestinian activist, teacher, and filmmaker behind the Oscar-winning documentary No Other Land, was shot dead by an Israeli settler near the village of Umm al‑Khair in the South Hebron Hills.

Jerusalem

Palestinian activist killed by Israeli settler in West Bank

A powerful magnitude 8.8 earthquake off Russia's Far Eastern Kamchatka Peninsula triggered tsunami waves of up to 16 feet nearby, and sparked evacuation orders in Japan, Hawaii and across the Pacific on Wednesday (July 30).

Hawaii

Tsunami reaches Hawaii after huge quake shakes Russia's Far East

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

Breakdown