Gucci carried 60% of Kering's profit — then fell 22% and the bill arrived

For years Kering's accounts were really Gucci's accounts: the Florentine house generated 41% of group sales and more than 60% of recurring operating profit. Then Gucci's sales began to fall. Presented on 10 February 2026, Kering's FY2025 results showed the dependence priced in full: group revenue of €14.67 billion, down 13% (restated of the Beauty division); Gucci down 22% for the year at €6 billion; and net income of €72 million — divided by more than ten versus 2024.

The response under Luca de Meo, CEO since September 2025, was a four-part triage. Cash: the Beauty division was sold to L'Oréal for $4 billion, closing in the first half of 2026, helping cut net debt by €4.7 billion to €3.3 billion by June 2026. Footprint: after 75 net store closures in 2025, another 84 were shut in the first half of 2026 against a target of 100 for the year — a 5% reduction of the directly operated network. Portfolio: Alexander McQueen, 5% of sales but heavy losses, was put into strategic review with job cuts on the table.

The plan was presented at a Capital Markets Day in Florence on 16 April 2026 under the name 'ReconKering'. By the first half of 2026 the group was back to comparable growth (+1%), with Gucci's decline narrowing to -2% in the second quarter on new handbag lines. But the arithmetic of the crisis year remains: one brand carried the group, the brand stumbled, and the group spent €4 billion of assets and 159 stores to buy itself a second chance.