Kering reported a sharp drop in 2025 revenue to €14.7 billion, down 13% from 2024, mainly due to weak performance at Gucci and softer demand across regions. The global luxury group said it is taking corrective steps to revive growth and improve margins going forward.
The luxury goods company Kering saw sales decline across both retail and wholesale channels in 2025. Retail sales, including e-commerce, fell 11% while wholesale dropped 9% as the group tightened distribution to maintain exclusivity.
Recurring operating income fell 33% to €1.6 billion, while net income stood at €532 million.
The company also reported negative net income of -€29 million after restructuring and optimization costs. Free cash flow dropped 35% to €2.3 billion excluding major real estate deals.
Gucci remained the biggest concern. Revenue fell 22% from €7.6 billion in 2024 to €5.9 billion in 2025, with both retail and wholesale seeing sharp declines.
Yves Saint Laurent reported a smaller drop, with revenue down 8% to €2.6 billion. Sales stabilized in the fourth quarter, supported by strong performance in North America and new product launches.
Bottega Veneta performed better, with revenue stable at €1.7 billion and growing 3% on a comparable basis. Strong retail growth and demand for new handbag lines supported its performance.
“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.”
– Luca de Meo, CEO, Kering
Kering plans to present its growth roadmap on April 16, 2026, focusing on stronger brand strategies, cost control and improved execution.
