Kering reports lower 2025 results, expects growth return in 2026

Kering reported a significant downturn in its 2025 financial results, with revenue declining 13% to €14.7 billion. On a comparable basis, revenue decreased by 10%. The group's recurring operating income fell sharply by 33% to €1.6 billion, resulting in a recurring operating margin of 11.1%, down from 14.5% in the previous year.

The company stated that "decisive actions" were taken in the second half of the year to strengthen its balance sheet, tighten costs, and implement strategic choices. Kering plans to present a roadmap at its Capital Markets Day in April aimed at enhancing the desirability of its luxury houses and reigniting growth. The objective is to create a "leaner, faster Kering" with improved brand positioning, sales, margins, and cash generation.

Despite the overall decline, the fourth quarter showed signs of gradual improvement, with the pace of revenue decline slowing to 3% on a comparable basis. Sales from directly operated retail, including e-commerce, decreased by 11% for the full year but were down only 4% in the final quarter. Wholesale revenue dropped 9%, partly due to efforts to refine distribution channels and enhance brand exclusivity.

Individually, Gucci saw its revenue fall 22% for the year, while Yves Saint Laurent's revenue decreased by 8%. Bottega Veneta's revenue, however, remained stable. Kering anticipates a return to growth in 2026 and expects an improvement in its operating margin.