Customers shop at a GUCCI luxury store in Shanghai, China.
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Kering said it expects a return to growth this year even as it posted another quarter of sales declines on Tuesday, with its biggest sales driver, Gucci, continuing to lag in new CEO Luca de Meo’s first quarter at the reins.
The company, which also owns brands Yves Saint Laurent, Bottega Veneta and Balenciaga, said fourth-quarter sales fell 3% on a comparable basis to 3.9 billion euros ($4.64 billion), a slight beat according to FactSet estimates.
Its flagship label Gucci, posted a 10% decline on a comparable basis in the quarter, also slightly better than consensus, while the other houses posted flat or moderate growth year-on-year.
“2025 was not the year we wanted,” CEO Luca de Meo said on an earnings call. “It didn’t reflect the full potential of Kering, and we all know it.”
In 2025, sales fell 10% to 14.7 billion euros. Recurring operating income was down 33% from last year, with its operating margin also declining to 11.1% in the period as a result of weaker sales.
Shares jumped as much as 14% and were last seen up 11%, however, the stock is down nearly 14% so far this year.
The positive sentiment spilled over into the broader luxury space, benefiting Burberry, which gained 3.4% in early trade, Hermes, last seen 3% higher, and Italy’s Brunello Cucinelli, which added 2.7%.
Shares of French luxury conglomerate LVMH were 1.4% higher, while Switzerland’s Richemont gained 2%.
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