Kering Reports Q4 and Full-Year 2025 Results

Kering, a luxury goods company, reported a decline in sales for the fourth quarter and the full year of 2025. Despite this, the company anticipates a return to growth in 2026, with Gucci continuing to lag.

Financial Performance

• Fourth Quarter 2025

  • Comparable sales decreased by 3% to 3.9 billion euros ($4.64 billion).
  • Gucci, Kering's largest brand, experienced a 10% comparable sales decline.
  • Other Kering brands like Yves Saint Laurent, Bottega Veneta, and Balenciaga, showed flat or moderate growth.

• Full Year 2025

  • Sales fell 10% to 14.7 billion euros.
  • Recurring operating income decreased by 33% from the previous year.
  • The operating margin declined to 11.1%.

Company Outlook

CEO Luca de Meo commented that 2025 did not reflect the full potential of Kering. The company expects to resume growth in 2026.

Market Reaction

Kering's shares increased by 11% following the announcement, although the stock has decreased by nearly 14% year-to-date. The positive market sentiment also influenced other luxury brands, with Burberry gaining 3.4%, Hermes 3%, and Italy's Brunello Cucinelli adding 2.7%. French luxury conglomerate LVMH shares were 1.4% higher, and Switzerland's Richemont gained 2%.