Kering swung to a net loss — the year the Gucci bet ran out

On 10 February 2026 Kering published full-year 2025 results that formalised three years of decline at France's second-largest luxury group. Revenue fell 13% as reported and 10% on a comparable basis to €14,675 million. Recurring operating income dropped 33% to €1,631 million, with the operating margin down to 11.1% from 14.5%. Including non-recurring items the group posted a net loss, group share, of €29 million; recurring net income was €532 million, down 56%. Net debt stood at €8 billion, cut by €2.5 billion during the year.

The arithmetic of the decline runs through one house. Gucci's revenue fell 19% on a comparable basis to €6 billion, with recurring operating income of €966 million at a 16.1% margin, down 4.9 points. Because Gucci still earns most of the group's profit, its contraction dragged the whole income statement with it. Saint Laurent fell 6% on a comparable basis to €2.6 billion; Bottega Veneta grew 3% to €1.7 billion with a record fourth quarter; the other houses declined 6%.

The response belongs to Luca de Meo, the CEO brought in to run the reset: strengthening the balance sheet, tightening costs and making strategic choices — above all the sale of Kering Beauté to L'Oréal, reclassified as a discontinued operation, with closing expected in the first half of 2026 and an exceptional dividend of €1.00 per share attached. There were signs of stabilisation: fourth-quarter revenue fell 9% as reported but only 3% on a comparable basis. De Meo said the 2025 performance 'does not reflect the Group's true potential' and promised a leaner, faster Kering in 2026.

The case is one of concentration. Kering's margin structure had been built on a single brand's creative momentum; when Gucci's desirability faded there was no second engine large enough to carry the group, and the loss year forced the sale of assets to finance the turnaround.