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Kering has reported a 33% drop in operating profit to €1.6bn (£1.39bn) as the group’s flagship brand, Gucci, recorded a 22% revenue decline to €5.99bn (£5.21bn) for the year.
Total group revenues also fell 13% as reported to €14.68bn (£12.77bn), though management noted a sequential improvement with fourth-quarter sales down only 3% on a comparable basis.
Its EBITDA was also down 19% to €3.67bn from €4.54bn, and a net loss from continuing operations of €29m (£25.2m) for the 2025 financial year, down from a €1.03bn (£900m) profit in 2024.
The drop in Gucci’s sales was attributed to creative transitions and falling demand in China, which remains a key factor in the brand’s performance. The brand’s recurring operating income also fell 40% to €966m (£840.4m), with its margin contracting to 16.1%.
Overall, Kering’s performance was mixed across other divisions. Yves Saint Laurent revenue declined 6% on a comparable basis to €2.64bn (£2.30bn), while Bottega Veneta reported stable revenue of €1.71bn (£1.49bn) and record fourth-quarter sales.
In contrast, Kering Eyewear remained a growth driver, posting a 3% comparable revenue increase to €1.6bn (£1.39bn).
The ‘Other Houses’ segment, which includes Balenciaga and Alexander McQueen, reported a recurring operating loss of €112m (£97.4m). This division was impacted by restructuring costs at Alexander McQueen, though Balenciaga returned to growth in the final quarter of the year.
Looking ahead, the group stated that Kering enters 2026 with the objective “to return to growth and improve margins this year”.
In a still uncertain macroeconomic environment, the group stated that it prioritises “flawless execution, equipping each house with sharper, more sustainable brand strategies and the operational support required to accelerate progress”.
Luca de Meo, chief executive of Kering, 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.
“As we enter 2026, the entire team is fully committed to delivering a leaner, faster Kering, enhancing brand positioning and sales, rebuilding margins, and strengthening cash generation to ensure sustainable, long‑term value creation.”
