Kering Pursues Strategic Turnaround After 2025 Sales Outperform Forecasts

Kering is implementing a strategic turnaround following a period of declining sales and profitability in 2025, with recent results showing smaller declines than anticipated and a renewed focus on growth for 2026.

On February 10, 2026, Kering’s shares increased by more than 15% according to Financial Times, and over 11% per Investing.com, after the company reported fourth-quarter sales that surpassed analyst expectations. The group’s sales for the quarter fell by approximately 3% on a constant-currency basis to about €3.91 billion, which was a smaller decline than the 5% forecast by analysts. Gucci, the company’s largest brand, experienced a 10% drop in comparable sales during the quarter, which was slightly better than the anticipated 11-12% decrease.

For the full year 2025, Kering’s revenue declined around 10% to approximately €14.67 billion, and operating income dropped by roughly one-third to about €1.6 billion. Despite these declines, the company’s net debt was reduced to approximately €8 billion by the end of 2025, down from around €10.5 billion at the previous year’s close. Kering also completed the sale of its beauty division to L’Oréal for about €4 billion as part of its restructuring efforts.

What the numbers show

• Kering’s Q4 2025 sales declined 3% to €3.91 billion
• Gucci’s Q4 2025 comparable sales fell 10%
• Kering’s net debt at year-end 2025 was approximately €8 billion
• Full-year 2025 revenue declined 10% to €14.67 billion

In the fourth quarter of 2025, Saint Laurent’s sales remained stable, while Bottega Veneta achieved about 3% growth. The division that includes Balenciaga and Alexander McQueen also saw sales rise by roughly 3% during the same period. These results contributed to a performance that exceeded some market expectations for the group’s overall brands.

Luca de Meo, who became CEO in September 2025, has been overseeing a restructuring plan focused on reducing costs, simplifying governance, and decreasing the group’s reliance on Gucci. The company’s leadership has stated that it aims to return to growth in 2026, with a focus on improving margins and strengthening cash flow.

Gucci is preparing for the debut collection by its new creative director, Demna, who is scheduled to present the Fall/Winter 2026 show on February 27, 2026. This appointment is part of broader efforts to revitalize the brand and support the group’s recovery strategy.

Industry reaction

Morgan Stanley analysts noted that, based on the fourth-quarter results, Kering is entering 2026 with a clear objective to return to growth and enhance margins. The analysts referenced the company’s recent performance as a basis for this assessment.

Kering’s management has stated its intention to continue restructuring and pursue financial improvements in the coming year. The group’s recent actions and results have been cited by industry observers as evidence of ongoing efforts to stabilize and strengthen its business.

* This article is based on publicly available information at the time of writing.