Gucci owner Kering posted weaker 2025 results and signalled a turnaround push for 2026 after sales and profits slid across much of its portfolio.
The French luxury group said revenue declined 13% to €14.67bn ($17.48bn) on a reported basis and 10% on a comparable basis.
Fourth-quarter revenue fell by 9% on a reported basis and 3% like-for-like, which the group said indicated gradual sequential improvement.
Recurring operating income dropped 33% to €1.63bn, pushing the margin down to 11.1% from 14.5%.
Recurring net income from continuing operations attributable to the Group reached €532m, or €4.34 per share.
Free cash flow from operations totalled €4.4bn, or €2.3bn excluding property transactions in Paris, New York and Tokyo, marking a 35% year-on-year fall.
Net debt stood at €8bn at the end of December, €2.5bn lower than a year earlier, while net financial expense came in at €594m.
The effective tax rate on recurring income rose to 36.1% from 28.3%.
Retail revenue across the group fell by 11% on a comparable basis, and wholesale sales declined by 9%, with growth at Kering Eyewear offset by tighter distribution at its Luxury Houses.
At Gucci, revenue slid 22% to €5.99bn, with retail down by 18% and wholesale off 34% on a comparable basis.
Recurring operating income was €966m, giving a 16.1% margin.
Yves Saint Laurent posted €2.64bn of revenue, down 8%, and held a 20% margin on €529m of operating income.
Bottega Veneta reported €1.70bn of revenue, up by 3% on a comparable basis, and improved its margin to 15.6%.
Jewellery labels such as Brioni, Boucheron, Pomellato, DoDo, and Qeelin recorded growth, posting a recurring operating loss of €112m.
Kering Eyewear and Corporate delivered €1.6bn of revenue, up 3% on a comparable basis, with eyewear generating €252m of recurring operating profit and a 15.8% margin.
The board plans to propose an ordinary dividend of €3 per share, following a €1.25 interim payment and a planned €1.75 final dividend, subject to shareholder approval.
An exceptional €1 per share dividend is also proposed following the disposal of Kering Beauté to L’Oréal, expected to close in the first half of 2026.
Looking ahead, Kering said it aims to restore growth and improve margins in 2026 and will present its next-phase transformation strategy at a Capital Markets Day on 16 April 2026.
Kering CEO Luca de Meo said: “The performance in 2025 does not reflect the Group’s true potential. In the second half, we took decisive actions – strengthening the balance sheet, tightening costs, and making strategic choices that lay the foundations for our next chapter.
