Directly operated retail, including e-commerce, dropped 11 per cent on a comparable basis, while wholesale revenue decreased 9 per cent as the Group tightened distribution to enhance exclusivity.
Kering’s FY25 revenue fell to €14.7 billion (~$17.493 billion), with operating income and margins declining amid weaker luxury demand and tighter distribution.
Gucci remained under pressure, while Yves Saint Laurent stayed resilient and Bottega Veneta posted growth.
Other Houses faced restructuring losses.
Kering targets a return to growth and margin improvement in 2026.
Recurring operating income stood at €1.6 billion, down 33 per cent year on year (YoY), with recurring operating margin narrowing to 11.1 per cent from 14.5 per cent in 2024, reflecting lower revenue. Recurring net income attributable to the Group reached €532 million, while net income from continuing operations turned slightly negative at €-29 million after restructuring and optimisation charges.
Free cash flow from operations amounted to €4.4 billion, or €2.3 billion excluding major real estate transactions, marking a 35 per cent decline.
Gucci remained the largest contributor but continued to face pressure, with revenue of €6 billion, down 22 per cent as reported and 19 per cent on a comparable basis. Retail sales fell 18 per cent and wholesale dropped 34 per cent, the group said in a financial release.
However, fourth-quarter trends improved sequentially as new collections, including La Famiglia, helped revive consumer interest. Gucci posted recurring operating income of €966 million with a 16.1 per cent margin.
Yves Saint Laurent delivered relatively resilient performance, with revenue of €2.6 billion, down 8 per cent as reported and 6 per cent on a comparable basis.
Fourth-quarter sales stabilised, supported by growth in North America and a return to positive momentum in Western Europe. The House maintained a 20 per cent operating margin and generated €529 million in recurring operating income.
Bottega Veneta showed strength, with revenue of €1.7 billion, stable as reported and up 3 per cent on a comparable basis. Fourth-quarter sales reached a record level, driven by North America and the Middle East, alongside improving trends in Asia Pacific. Recurring operating income reached €267 million, with margin expanding to 15.6 per cent.
The Other Houses segment reported revenue of €2.9 billion, down 10 per cent as reported and 6 per cent on a comparable basis. Retail performance improved in the fourth quarter, with Balenciaga returning to positive retail growth. However, the division posted a recurring operating loss of €112 million, weighed down by restructuring at Alexander McQueen.
Kering enters 2026 aiming to return to growth and improve margins despite a still uncertain macroeconomic backdrop. The Group plans to prioritise disciplined execution, sharpen brand positioning across Houses and provide required operational support as it seeks to reignite demand and restore profitability.
Fibre2Fashion News Desk (HU)