The Tamesis
On Tuesday, Kering said sales in the fourth quarter of fiscal 2025, which ended on December 31, fell 3% at constant exchange rates to 3.9 billion euros. The result was better than consensus expectations for a 5% decline, and Kering shares rose 11% in early trading.
Revenue at Kering’s largest brand, Gucci, was dragged down. Fourth-quarter home sales fell 10% year-on-year, still higher than the consensus estimate of an 11.5% decline. “The La Famiglia collection was launched last September and has been gradually rolled out since early January, while [other] The financial report wrote: “The freshness has helped revive people’s interest in the Gucci brand.” Demna’s first show at Gucci for the 2026 autumn and winter season will be held on February 27.
As for sales at Kering’s other brands, Saint Laurent remained stable in the fourth quarter, marking another quarter of growth, while Bottega Veneta rose 3%. Sales in the group’s “Other Brands” division, which includes Balenciaga, Alexander McQueen and Boucheron, rose 3%. Kering Group’s eyewear and corporate sales increased 2%.
“These results point to a slight improvement in Kering’s portfolio and activity,” Bernstein luxury goods analyst Luca Solca wrote in a note. “Whether this heralds a turnaround that allows brands like Gucci to grow in 2026 in line with current consensus expectations will be key to the investment case argument.”
By region, sales in the Asia-Pacific region fell 6% year-on-year in the fourth quarter, Japan fell 7%, and Western Europe fell 7%. Meanwhile, sales in North America increased 2% and sales in the Rest of the World increased 3%.
In contrast, LVMH said its fourth-quarter sales rose 1% organically to about 22.7 billion euros, while its fashion and leather goods division fell 3% to 10.2 billion euros. On a constant exchange rate basis, Richemont Group’s sales increased by 11% year-on-year in this quarter. Hermès will release its fourth-quarter earnings report on February 12.
For the whole of 2025, Kering Group’s revenue fell 10% year-on-year to 14.7 billion euros. Gucci’s sales reached 6 billion euros, a decrease of 19%; Yves Saint Laurent’s sales reached 2.6 billion euros, a decrease of 6%; Bottega Veneta’s sales reached 1.7 billion euros, an increase of 3%; sales of other houses reached 2.9 billion euros, a decrease of 6%. The group’s recurring operating income in 2025 fell 33% to 1.63 billion euros.
“The results for 2025 do not reflect the group’s true potential,” Chief Executive Luca de Meo, who joined Kering in September, said in a statement. “Second half [of the year]we took decisive action – strengthening our balance sheet, tightening costs and making strategic choices to lay the foundation for our next chapter. “
De Meo reiterated that his roadmap will be unveiled at the group’s Capital Markets Day on April 16. “As we enter 2026, the entire team is fully committed to building a leaner and faster Kering,” he added. “Enhance brand positioning and sales, rebuild margins and enhance cash generation to ensure sustainable, long-term value creation.”
Many are optimistic that recent leadership changes will begin to bear fruit. Thomas Chauvet, managing director at Citi, noted: “After an unprecedented period of underperformance, Kering shares outperformed the luxury sector in 2025, reflecting the ‘deal of hope’ that emerged following the appointment of former Renault Luca de Meo as group CEO and ex-Balenciaga designer Demna as Gucci.” “We currently expect group sales to reach 15 billion euros in 2026, up 5% year-on-year, including 5% growth at Gucci.”
