Kering revenue down 13% in 2025, plans for growth and margin recovery

Luxury group Kering announced a 13% year-on-year drop in revenue for 2025, with sales reaching €14.7 billion. Despite a 10% decline on a comparable basis, the company is setting its sights on a return to growth and improved profitability in 2026.

Recurring operating income fell by 33% to €1.6 billion, resulting in an operating margin of 11.1%, down from 14.5% in the previous year. CEO Luca de Meo acknowledged that the 2025 performance did not reflect the group's full potential. He highlighted decisive actions taken in the second half of the year, including strengthening the balance sheet, managing costs, and making strategic choices to build the foundation for the next phase.

Kering plans to present a roadmap at its Capital Markets Day on April 16, aiming to enhance the desirability of its luxury houses and reignite growth. This strategy involves defined brand strategies, a more streamlined organization, and financial discipline. The company anticipates a return to growth and margin improvement in 2026.

Among Kering's brands, Gucci saw its revenue decrease by 19% on a comparable basis, while Yves Saint Laurent experienced a 6% decline. Bottega Veneta, however, maintained stable revenue, with a 3% increase on a comparable basis. These figures reflect challenges, particularly for Gucci, and the group's deliberate efforts to refine distribution and preserve brand exclusivity.