Kering SA (EU:KER) reported fourth-quarter results that came in ahead of analyst forecasts, driving the shares more than 11% higher as the luxury group set out plans to return to growth in 2026 following a difficult year for its core Gucci brand.
The owner of Gucci, Saint Laurent and Bottega Veneta generated fourth-quarter revenue of €3.91bn, representing a 3% decline on a comparable basis. While still negative, this marked an improvement from the 5% like-for-like contraction recorded in the third quarter.
Gucci’s comparable sales were down 10% in the period, unchanged from the prior quarter and ending a run of eight consecutive quarters of worsening trends. The brand delivered €1.62bn in revenue for the quarter. For the full year, Gucci sales reached €5.99bn, a 19% decline on a comparable basis.
Morgan Stanley analysts said the figures were “slightly better than expected,” noting that Gucci’s full-year operating profit came in around 8% above consensus forecasts. The bank also estimated that group earnings before interest and tax were roughly 3% ahead of expectations on a pro-forma basis.
“Kering enters 2026 with a clear objective: to return to growth and improve margins this year,” the company said.
Performance across the rest of the portfolio was mixed but showed signs of stabilisation. Saint Laurent delivered flat comparable growth in the fourth quarter, with revenue of €735m, recovering from declines earlier in the year. Bottega Veneta recorded its strongest quarterly sales on record, with comparable revenue up 3% to €467m, while full-year like-for-like sales rose 3% to €1.71bn.
For 2025 as a whole, Kering reported total revenue of €14.68bn, down 10% on a comparable basis. Recurring operating income fell 33% to €1.63bn, reducing the operating margin to 11.10% from 14.50% a year earlier. Recurring net income from continuing operations declined 56% to €530m, and after restructuring costs the group posted a net loss of €30m, compared with a €1.03bn profit in 2024.
Geographically, trends improved across several key regions. In Western Europe, fourth-quarter comparable sales declined 7%, an improvement from a 14% fall in the previous quarter. North America returned to growth, rising 2% after three quarters of declines, while Asia-Pacific excluding Japan recorded a 6% drop, narrowing from an 11% decline in the third quarter.
Kering ended the year with net debt of €8bn, down from €10.5bn previously. Free cash flow from operations totalled €4.4bn, or €2.3bn excluding real estate transactions.
The board proposed an ordinary dividend of €3 per share, alongside an exceptional €1 dividend linked to the planned sale of Kering Beauté to L’Oréal, which is expected to complete in the first half of 2026.
Leave a Reply