Kering Ends 2025 Weaker, but Sees Signs of Stabilisation Across Core Brands

After a difficult year for global luxury, Kering closed 2025 with weaker financial results but signs of stabilisation emerging in the second half. Revenue and profitability declined sharply year-on-year, as the group absorbed the impact of slowing demand, brand resets and restructuring costs, while positioning 2025 as a transition year ahead of a planned return to growth in 2026.

The group reported revenue of €14.7 billion, down 13% as reported and 10% on a comparable basis. Performance improved progressively through the year, with fourth-quarter revenue down 3% on a comparable basis, pointing to stabilising trends across most regions.

Recurring operating income fell to €1.63 billion, down 33% year-on-year, with the recurring operating margin compressing to 11.1%. Recurring net income attributable to the group stood at €532 million. Reported net income turned negative, reflecting restructuring, impairment and optimisation costs incurred during the year.

Management described 2025 as a year of correction and consolidation rather than execution failure, citing actions taken in the second half to strengthen financial flexibility, tighten cost controls and refocus brand strategies.

Gucci

Gucci remained the group’s main drag on performance. Revenue declined 19% on a comparable basis to €6 billion, with retail sales down 18%. Wholesale revenue fell more sharply as the House continued to rationalise distribution in an effort to restore brand exclusivity.

Sequential improvement was visible in the fourth quarter, supported by increased product newness and the rollout of the La Famiglia collection. Gucci generated €966 million in recurring operating income, though margins fell to 16.1%, reflecting negative operating leverage amid lower volumes.

Saint Laurent

Yves Saint Laurent showed greater resilience. Revenue reached €2.6 billion, down 6% on a comparable basis, with fourth-quarter sales broadly flat year-on-year.

Growth in North America, a return to positive momentum in Western Europe, and strong performance in footwear and women’s ready-to-wear supported results. The House maintained a 20% operating margin, delivering €529 million in recurring operating income while continuing to invest in brand development.

Bottega Veneta

Bottega Veneta was the standout performer within the portfolio. Revenue rose 3% on a comparable basis to €1.7 billion, with directly operated retail sales up 4%.

The fourth quarter marked the House’s highest-ever quarterly revenue, driven by strong demand in North America and the Middle East, alongside improving trends in Asia. Recurring operating income reached €267 million, lifting margins to 15.6%, supported by disciplined cost management and consistent product execution.

Other Houses and Eyewear

The group’s Other Houses generated €2.9 billion in revenue, down 6% on a comparable basis. Balenciaga returned to retail growth, while Alexander McQueen continued its restructuring. Jewellery performed strongly, led by Boucheron, with steady growth at Pomellato, DoDo and Qeelin.

Kering Eyewear remained a stable contributor, with revenue up 3% on a comparable basis to €1.6 billion and a 15.8% operating margin.

Balance Sheet and Outlook

Net debt stood at €8.0 billion at year-end, down €2.5 billion year-on-year. Free cash flow from operations reached €4.4 billion, or €2.3 billion excluding real estate transactions.

The Board proposed an ordinary dividend of €3.00 per share, alongside an exceptional dividend of €1.00 per share linked to the planned disposal of Kering Beauté to L’Oréal, expected to close in the first half of 2026.

Heading into 2026, Kering’s stated priorities remain a return to growth and margin recovery, though visibility remains limited in a still-uneven luxury environment. The group has emphasised execution, brand desirability and financial discipline over rapid expansion.

Further detail is expected at the Capital Markets Day on April 16, 2026, where management is set to outline how a leaner, more focused Kering plans to translate stabilisation into sustainable long-term value creation.