PARIS – Luxury goods giant Kering, owner of Gucci, reported a 13% decrease in sales for 2025 and a 93.6% plunge in net profit, according to a statement released Tuesday, February 10, 2026. The results reflect a period of restructuring initiated with the arrival of new CEO Luca de Meo in September.
“The group’s performance in 2025 does not reflect its true potential,” de Meo said in the statement, promising a detailed roadmap for revitalizing growth. He indicated plans to present a clear strategy on April 16, encompassing defined brand strategies, a more efficient organization, and rigorous financial discipline.
The financial results have been restated to exclude Kering’s beauty division, which is slated to be sold to L’Oréal, with the deal expected to finalize in the first half of 2026. Kering’s net profit for 2025 totaled 72 million euros, while sales reached 14.67 billion euros – slightly below analyst expectations of 14.8 billion euros, as compiled by Bloomberg.
Addressing Challenges at the Luxury Group
The group’s current operating margin stands at 11.1% for the year, down from 14.9% in 2025. Fourth-quarter 2024 revenue declined by 9% to 3.9 billion euros. HSBC analysts cautioned in October that a turnaround would not be immediate, noting that “many changes have already been implemented, but few effects are expected before mid-February 2026.”
Gucci, the flagship brand, experienced a significant 22% sales drop in 2025, totaling 6 billion euros. However, Kering highlighted a “sequential improvement” in Gucci’s performance over recent quarters, attributing it to successful new product launches, particularly in handbags.
De Meo, formerly of Renault, assumed the role of Kering’s CEO in September and is tasked with steering the group back to growth. He has already initiated changes, including the appointment of Francesca Bellettini as the head of Gucci and the arrival of Demna as the brand’s creative director, replacing Alessandro Michele.
From 2022 to 2025, Gucci’s sales nearly halved, falling from over 10 billion euros to 6 billion euros. Over the same period, Kering’s net profit plummeted from 3.6 billion euros to 72 million euros.
A 4 Billion Euro Shift
The sale of Kering’s beauty division to L’Oréal for 4 billion euros has reduced the group’s financial debt, which stood at 9.5 billion euros in the first half of 2025. Kering is also divesting real estate assets, including its Fifth Avenue property in New York, which was sold to Ardian for 766 million euros.
While Gucci struggles, Bottega Veneta has shown resilience, maintaining stable sales of 1.7 billion euros in 2025. The brand, known for its woven leather goods, is one of the few within the Kering portfolio to avoid a sales decline during this period.
McQueen is undergoing a strategic review and considering job cuts at its London headquarters and in Italy. Unlike Bottega Veneta and Balenciaga, McQueen’s beauty license was not included in the sale to L’Oréal, which already holds licenses for Yves Saint Laurent and will soon include Gucci.
Bartolomeo Rongone, the current director general of Bottega Veneta, will leave his position on March 31 to become the CEO of Moncler. A successor has not yet been named.
