The group said performance improved sequentially during the year, with Q4 revenue declining 9% as reported and 3% on a comparable basis. Sales from directly operated retail stores, including e-commerce, fell 11% on a comparable basis across the full year, while wholesale revenue declined 9%.
Recurring operating income reached €1.6 billion, down 33% year-on-year, resulting in a recurring operating margin of 11.1% compared with 14.5% in 2024. Recurring net income attributable to the group totalled €532 million. Including non-recurring items related mainly to optimisation and restructuring measures, net income from continuing operations attributable to the group was -€29 million.
Free cash flow from operations was €4.4 billion in 2025, or €2.3 billion excluding real estate transactions in Paris, New York and Tokyo, representing a 35% decrease compared with 2024. Net debt stood at €8 billion as of December 31, 2025, down €2.5 billion year-on-year.
Chief Executive Luca de Meo said the company had taken “decisive actions” in the second half of the year to strengthen its balance sheet, tighten costs and make strategic choices designed to support its next phase of growth.
“We will present a clear roadmap to boost the desirability of our Luxury Houses and reignite growth, with well-defined brand strategies, a more effective organisation and strong financial discipline,” he said, referring to the group’s upcoming Capital Markets Day on April 16, 2026.
Among the group’s major brands, Gucci generated €6 billion in revenue, down 22% as reported, while Yves Saint Laurent posted €2.6 billion in revenue, down 8%. Bottega Veneta recorded €1.7 billion in revenue, stable as reported and up 3% on a comparable basis.
The group’s “Other Houses” division, including Balenciaga, Alexander McQueen and Brioni, generated €2.9 billion in revenue, down 10% as reported. Jewellery brands such as Boucheron, Pomellato, DoDo and Qeelin continued to expand during the year.
Looking ahead, Kering said it aims to return to growth and improve margins in 2026, supported by a strengthened balance sheet, refined brand strategies and operational improvements designed to create a “leaner, faster” group.
