On Tuesday, Kering said sales fell 3% on a constant currency basis to €3.9 billion in the fourth quarter of fiscal 2025, ended December 31. The outcome was a beat on consensus expectations of a 5% decline.
Kering’s largest brand, Gucci, dragged on revenues. Sales at the house were down 10% year-on-year in Q4, still beating consensus estimates of an 11.5% decline. “The launch of the collection La Famiglia, presented last September and rolled out progressively since early January, along with [other] newness, helped revive interest in the Gucci brand,” the earnings statement read. Demna’s debut show at Gucci for the Fall/Winter 2026 season will be held on February 27.
As for sales at Kering’s other brands, Saint Laurent was stable in Q4, marking another quarter of improvement, while Bottega Veneta was up 3%. Sales at the group’s “other houses” division, which includes Balenciaga, Alexander McQueen and Boucheron, were up 3%. Kering eyewear and corporate sales were up 2%.
“These results point to a slight improvement across the Kering portfolio and activities,” Bernstein luxury goods analyst Luca Solca wrote in a note. “Whether this could be a precursor for an inflection, moving brands like Gucci to growth in 2026 as consensus currently anticipates, will be the key investment case debate.”
By region, Asia-Pacific sales were down 6% year-on-year in Q4, Japan was down 7%, while Western Europe was down 7%. Meanwhile, sales in North America were up 2%, and up 3% in the rest of the world.
By comparison, LVMH said its fourth-quarter sales grew 1% on an organic basis to around €22.7 billion, with its fashion and leather goods division declining 3% to €10.2 billion. Richemont posted sales up 11% year-on-year at constant exchange rates in the quarter. Hermès is to publish its Q4 earnings on February 12.
For the 2025 full year, Kering revenues were down 10% year-on-year to €14.7 billion. Gucci sales hit €6 billion, down 19%; Saint Laurent sales reached €2.6 billion, down 6%; Bottega Veneta €1.7 billion, up 3%; and sales at other houses reached €2.9 billion, down 6%. The group’s recurring operating income for 2025 was down 33% to €1.63 billion.
“The performance in 2025 does not reflect the group’s true potential,” CEO Luca de Meo, who joined Kering in September, said in a statement. “In the second half [of the year], we took decisive actions — strengthening the balance sheet, tightening costs, and making strategic choices that lay the foundations for our next chapter.”
De Meo reiterated that his roadmap will be presented at the group’s Capital Markets Day on April 16. “As we enter 2026, the entire team is fully committed to delivering a leaner, faster Kering,” he added. “Enhancing brand positioning and sales, rebuilding margins, and strengthening cash generation to ensure sustainable, long-term value creation.”
Many are optimistic the recent leadership change will begin to bear fruit. “Kering shares have outperformed the luxury sector in 2025, following an unprecedented period of underperformance, reflecting the emergence of a ‘hope trade’ following the appointment of ex-Renault Luca de Meo as group CEO and former Balenciaga designer Demna at Gucci,” Citi managing director Thomas Chauvet noted. “For now, we expect consensus 2026 group sales of €15 billion, up 5% year-on-year, including Gucci up 5%.”
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