Kering Reports Better-Than-Expected Q4 Sales in 2025

On Tuesday, Kering announced that sales had decreased by 3% on a constant currency basis to €3.9 billion in the fourth quarter of fiscal 2025, which ended on December 31. Despite the decline, the results surpassed consensus expectations of a 5% decrease, leading to an 11% increase in Kering stock during early morning trading.

The company’s flagship brand, Gucci, experienced a 10% drop in sales in Q4, outperforming expectations of an 11.5% decline. The introduction of the La Famiglia collection in September, along with other new releases, helped rejuvenate interest in the Gucci brand. The eagerly anticipated debut show by designer Demna for the Fall/Winter 2026 season is scheduled for February 27.

Other brands under the Kering umbrella fared better in the fourth quarter. Saint Laurent maintained stable sales, Bottega Veneta saw a 3% increase, and the group’s “other houses” division, which includes Balenciaga, Alexander McQueen, and Boucheron, reported a 3% rise in sales. Kering eyewear and corporate sales also experienced a 2% increase.

Analyst Luca Solca from Bernstein noted, “These results indicate a slight improvement across the Kering portfolio and activities. The possibility of brands like Gucci returning to growth in 2026 will be a key topic of discussion for investors.”

Geographically, sales in Asia-Pacific dropped by 6% in Q4, Japan by 7%, and Western Europe by 7%. However, North America saw a 2% increase in sales, while the rest of the world reported a 3% growth.

In comparison, LVMH reported a 1% organic growth in fourth-quarter sales, reaching around €22.7 billion, with a 3% decline in its fashion and leather goods division. Richemont saw an 11% increase in sales at constant exchange rates for the quarter. Hermès is scheduled to release its Q4 earnings on February 12.

For the full year of 2025, Kering’s revenues dropped by 10% year-on-year to €14.7 billion. Gucci sales reached €6 billion, down by 19%; Saint Laurent at €2.6 billion, down by 6%; Bottega Veneta at €1.7 billion, up by 3%; and sales from other houses at €2.9 billion, down by 6%. The group’s recurring operating income for the year decreased by 33% to €1.63 billion.

CEO Luca de Meo, who joined Kering in September, acknowledged the challenges faced in 2025. He stated, “The performance in 2025 does not reflect the group’s true potential. In the second half of the year, we implemented decisive actions to strengthen the balance sheet, cut costs, and make strategic choices to set the stage for our future.”

De Meo announced that the company’s roadmap would be unveiled at the Capital Markets Day on April 16. He emphasized the commitment to delivering a more efficient and agile Kering in 2026, focusing on enhancing brand positioning, increasing sales, improving margins, and ensuring sustainable value creation.

Industry experts are optimistic about the leadership changes at Kering. Thomas Chauvet, managing director at Citi, noted, “Kering shares have shown strong performance in 2025, reflecting renewed investor confidence following the appointment of Luca de Meo as CEO and Demna as Gucci’s new designer. Consensus forecasts for 2026 anticipate a 5% increase in group sales, with Gucci expected to grow by 5%.”