PARIS – Kering posted a net loss in 2025 as chief executive officer Luca de Meo implemented radical restructuring measures to turn around the ailing French luxury group.
The owner of brands including Gucci, Saint Laurent and Balenciaga said revenues in the three months to Dec. 31 fell 9 percent at reported exchange rates to 3.91 billion euros, representing a decline of 3 percent in comparable terms.
The figures beat a consensus of analyst estimates, which had called for a 5 percent organic drop in reported sales to 3.83 billion euros.
Gucci also showed a sequential improvement, with organic revenue declining 10 percent, slightly better than the 11 percent decline forecast by analysts, as creative director Demna’s arrival revived interest in the group’s star brand.
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For the full year, Kering posted a net loss of 29 million euros, versus a net profit of 1.02 billion euros in 2024, reflecting non-recurring items mostly related to optimization and restructuring measures.
Recurring operating profit was down 33 percent to 1.63 billion euros, and the recurring operating margin fell to 11.1 percent in 2025 from 14.5 percent the previous year. Gucci accounted for 59 percent of the group’s operating profit last year.
“Of course, 2025 was not the year we wanted. I think it didn’t reflect the full potential of Kering, and we all know it here. But what matters is our response: swift, disciplined and unwavering,” de Meo said on a webcast with analysts and reporters.
“This revenue level reflects the low point of the cycle and the starting point of our rebound,” added de Meo, who is due to present his strategic roadmap at a Capital Markets Day in Florence, Italy, on April 16.
The results marked an improvement from the third quarter, when group revenue fell 10 percent at reported exchange rates and 6 percent on an underlying basis.
Most of Kering’s luxury divisions saw organic sales growth in the fourth quarter.
Saint Laurent was flat, and the “other houses” group, which includes Balenciaga and Alexander McQueen, reported a 3 percent increase. Bottega Veneta also saw a 3 percent organic sales rise.
The Kering eyewear and corporate division reported a 2 percent increase in comparable sales.
The figures for 2025 and 2024 were restated to reflect the sale of Kering Beauté to French beauty giant L’Oréal, expected to close in the first half of 2026. The beauty division’s activities have been reclassified as discontinued operations.
By comparison, organic sales at LVMH Moët Hennessy Louis Vuitton’s key fashion and leather goods division fell 3 percent year-over-year in the fourth quarter, broadly in line with consensus estimates.
Hermès International is due to report fourth-quarter results on Thursday.
De Meo said the results of the turnaround strategy were already being felt in stores.
“I spend time every weekend in our stores, seeing the teams, talking to clients, feeling the product, and I can tell you, there is energy coming back. Our products are reconnecting with our clients,” he said. “The momentum is real – early, fragile, but real – and I can guarantee you that we will build on it.”
The former Renault executive has implemented a cost-cutting drive that delivered 925 million euros in cost savings in 2025, reducing group operating expenses by 9 percent year-on-year. Kering closed 75 stores and plans another 100 closures this year, with more under discussion.
It has also streamlined its portfolio with the sale of key real estate assets, bringing net debt down to 8.04 billion euros in 2025 from 10.5 billion euros the previous year.
