PARIS — Kering reported a third year of declining sales, dragged down by flagship label Gucci as the brand prepares to unveil new designer Demna’s creative vision.
Sales for the fourth quarter fell 3 percent on a comparable basis, with Gucci down 10 percent — an improvement compared to the brand’s 22 percent drop in the first nine months of the year.
“The performance in 2025 does not reflect the group’s true potential,” new chief executive Luca de Meo said in a statement.
The former car industry executive, who built a reputation as a corporate turnaround whiz after streamlining product lines at French carmaker Renault and boosting the global appeal of Italian label Fiat, has moved quickly to tackle some of Kering’s biggest challenges since taking the reins in September. He reduced company debt by delaying a deal to acquire Valentino and selling its nascent beauty division to L’Oreal for $4.7 billion.
Reviving Gucci — which is set to present new designer Demna’s debut runway show February 27 — remains the main order of business.
Yves Saint Laurent reported flat sales in the holiday quarter while Bottega Veneta eked out 3 percent comparable sales growth.
The group’s Other Houses division turned positive, with retail sales up 6 percent as Balenciaga returned to growth and jewellery brands Boucheron and Pomellato continued their “dynamic expansion.”
Kering leadership will comment on the results in a presentation for analysts and investors Tuesday morning.
Stay tuned to BoF for more developments to this breaking story.
Kering Must Downsize, Reduce Gucci Exposure and Chase Synergies, CEO de Meo Says in Memo
Luca de Meo calls for store closures, recalibrated pricing and a push to grow brands beyond Gucci as the group works to return to sustainable.
