Kering closed 200+ stores as Gucci's sales slump pulled the group's profit down 93%

On 10 February 2026, Kering reported full-year 2025 results that laid bare the luxury group's deepening crisis. Revenue fell 13% to €14.7 billion, operating income dropped 33% to €1.63 billion, and net income plunged 93.6% to just €532 million. The operating margin contracted from 14.5% to 11.1%. The primary cause was Gucci, which accounted for roughly 40% of group revenue and saw its sales fall 22% to €6 billion, with retail down 18% and wholesale down 34% on a comparable basis.

Kering responded with a sweeping restructuring. In 2025 it closed 133 stores across its brands, for a net reduction of 75, leaving 1,719 locations worldwide. The closures were concentrated in Asia-Pacific (42 stores), Japan (16), Western Europe (13) and North America (11). A further 100 closures were planned for 2026, with Gucci expected to absorb the largest share. Inventory was reduced by 8%, with further cuts planned.

New CEO Luca de Meo, appointed in September 2025, outlined a strategy of 'operational discipline' and 'higher-quality retail footprint'. The group also sold its beauty division to L'Oréal for $4.7 billion in October 2025, with a 50-year exclusive licensing agreement expected to close in the first half of 2026. The proceeds would fund investment in the remaining portfolio while maintaining cost control.

The results reflected a broader luxury sector slowdown, particularly in China. Kering's other brands performed unevenly: Yves Saint Laurent revenue fell 6% to €2.6 billion, Bottega Veneta grew 3% to €1.7 billion with its highest-ever Q4, and the Other Houses division — including Balenciaga and Alexander McQueen — declined 6%. Kering Eyewear grew 3% to €1.6 billion. A Capital Markets Day was scheduled for 16 April 2026 to present the full turnaround plan.