Kering Records a 13% Decline in Revenue in 2025 and Projects a Return to Growth
On Tuesday, the luxury group Kering announced its 2025 results, marked by a significant decrease in revenue to 14.7 billion euros. Despite this decline, the group has strengthened its balance sheet and aims to return to growth in 2026.
Financial Performance Details
Kering recorded a revenue of 14.675 billion euros in 2025, down by 13% in reported figures and 10% on a comparable basis, which neutralizes the effects of currency and scope changes. The decline was gradual throughout the year, with the fourth quarter showing a turning point: sales declined by 9% in reported figures and only 3% on a comparable basis, indicating a sequential improvement. Own-retail sales, including e-commerce, fell by 11% on a comparable basis, while wholesale decreased by 9%. This mixed performance reflects varying dynamics across regions and brands. The current operating income stood at 1.631 billion euros, down 33% from 2024, with a current operating margin of 11.1% compared to 14.5% the previous year. The recurring net income attributable to the group reached 532 million euros, down 56% year-on-year.
Financial Position and Dividend Proposal
As of December 31, 2025, Kering showed a net financial debt of 8 billion euros, a reduction of 2.5 billion compared to the previous year, benefiting from strategic real estate transactions and an active liquidity management program. The group's operational free cash flow reached 4.4 billion euros in 2025. Excluding real estate operations in Paris, New York, and Tokyo, this flow amounted to 2.3 billion euros, representing a 35% decline compared to the previous year. The board of directors proposes to the general assembly on May 28, 2026, an ordinary dividend of 3.00 euros per share, with an advance of 1.25 euros paid on January 15, 2026. Additionally, an exceptional dividend of 1.00 euro per share will be proposed, linked to the sale of Kering Beauty to L'Oréal for 4 billion euros, expected to be finalized in the first half of 2026.
Performance by Brand
Gucci, the main contributor to the group, saw its revenue decline by 22% in reported figures and 19% on a comparable basis, to 5.992 billion euros, with a current operating income of 966 million euros. Yves Saint Laurent recorded a revenue of 2.643 billion euros, down 8% in reported figures and stable on a comparable basis in the fourth quarter. Bottega Veneta remains the positive exception in the portfolio, with stable revenue in reported figures and an increase of 3% on a comparable basis, at 1.706 billion euros. Kering Eyewear grew by 3% on a comparable basis to 1.592 billion euros and remains profitable with a current operating margin of 15.8%. Luca de Meo, appointed CEO in September 2025, stated that 'all teams are fully mobilized to make Kering a more agile and faster group.' The group is preparing a capital markets day on April 16, 2026, to detail its roadmap for enhancing the desirability of its brands and boosting growth.
