Directly operated retail, including e-commerce, fell 11 percent on a like-for-like basis, while wholesale revenue declined 9 percent as the Group restricted distribution to improve 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 remained resilient and Bottega Veneta posted growth. Other Chambers faced losses due to restructuring. Kering aims to return to growth and improve margins in 2026.
Recurring operating income stood at €1.6 billion, down 33 percent year-on-year (yoy), and recurring operating margin fell to 11.1 percent from 14.5 percent in 2024, reflecting lower revenue. Recurring net profit attributable to the Group reached €532 million, while net profit from continuing operations turned slightly negative to -€29 million after restructuring and optimization charges.
Free cash flow from operations amounted to €4.4 billion, or €2.3 billion excluding major real estate transactions, a decrease of 35 percent.
Gucci remained the largest contributor but continued to face pressure, with revenue of 6 billion euros, down 22 percent on a reported basis and down 19 percent on a like-for-like basis. Retail sales fell 18 percent and wholesale sales fell 34 percent, the group said in a financial statement.
However, Q4 trends improved sequentially as new collections, including La Famiglia, helped revive consumer interest. Gucci recorded recurring operating income of 966 million euros with a margin of 16.1 percent.
Yves Saint Laurent delivered a relatively resilient performance, with revenue of €2.6 billion, down 8 percent as reported and down 6 percent on a comparable basis.
Fourth-quarter sales stabilized, supported by growth in North America and a return to positive momentum in Western Europe. The Chamber maintained an operating margin of 20 percent and generated €529 million in recurring operating income.
Bottega Veneta showed strength, with revenue of €1.7 billion, stable as reported and up 3 percent on a comparable basis. Fourth-quarter sales hit a record level, driven by North America and the Middle East, along with improving trends in Asia Pacific. Recurring operating income reached €267 million, with a margin expanding to 15.6 percent.
The Other Homes segment reported revenue of €2.9 billion, 10 percent less than reported and 6 percent less on a comparable basis. Retail performance improved in the fourth quarter, with Balenciaga once again posting positive retail growth. However, the division posted a recurring operating loss of €112 million, weighed down by the restructuring of Alexander McQueen.
Kering enters 2026 with the aim of returning to growth and improving margins despite a still uncertain macroeconomic context. The Group plans to prioritize disciplined execution, improve brand positioning across all Houses and provide necessary operational support as it seeks to revive demand and restore profitability.
Fiber2Fashion News Desk (HU)
