Kering revenue falls in 2025, recovery targeted for 2026

Core Viewpoint - Kering, the owner of Gucci, reported weaker results for 2025, with a significant decline in sales and profits, and is signaling a turnaround strategy for 2026 [1] Financial Performance - Revenue decreased by 13% to €14.67 billion ($17.48 billion) on a reported basis and by 10% on a comparable basis [1] - Recurring operating income fell by 33% to €1.63 billion, reducing the margin from 14.5% to 11.1% [1] - Recurring net income from continuing operations was €532 million, equating to €4.34 per share [2] - Free cash flow from operations totaled €4.4 billion, down 35% year-on-year [2] - Net debt at the end of December was €8 billion, a decrease of €2.5 billion from the previous year [2] Segment Performance - Retail revenue declined by 11% on a comparable basis, while wholesale sales fell by 9% [3] - Gucci's revenue dropped 22% to €5.99 billion, with retail down 18% and wholesale off 34% [3] - Yves Saint Laurent reported €2.64 billion in revenue, down 8%, with a 20% margin on €529 million of operating income [3] - Bottega Veneta's revenue increased by 3% to €1.70 billion, improving its margin to 15.6% [4] - Kering Eyewear and Corporate generated €1.6 billion in revenue, also up 3% on a comparable basis [4] Future Outlook - The board plans to propose an ordinary dividend of €3 per share, alongside an exceptional €1 per share dividend following the disposal of Kering Beauté to L'Oréal [5] - Kering aims to restore growth and improve margins in 2026, with a new transformation strategy to be presented on April 16, 2026 [5] - CEO Luca de Meo emphasized that the 2025 performance does not reflect the group's true potential and highlighted decisive actions taken in the second half of the year [6]