Following today’s release of Kering’s figures for the twelve months ending 31 December 2025; Chloe Tedford-Jones, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Kering’s 2025 results underscore the persistent strategic and operational strains faced by the group, with total revenues down 13.0% to €14.7bn, falling 10% on a constant currency basis, reflecting continued demand weakness across key luxury segments, particularly at Gucci. This performance follows that of rival LVMH, which saw its Fashion & Leather Goods division decline a more moderate 8.0%, highlighting Kering’s relative vulnerability in the current luxury downturn. The year was marked by significant leadership changes, most notably Luca de Meo succeeded François-Henri Pinault as group CEO in September 2025, signalling a shift toward a leaner governance structure aimed at stabilising performance. However, these strategic shifts have introduced near-term uncertainty, as the new leadership must reconcile bold changes with the commercial realities of reviving revenue and profitability in a more subdued luxury fashion environment.
“The group’s largest brand, Gucci, continued its pronounced decline, as 2025 revenue fell 21.7% to €6.0bn as consumer demand remained weak. In response, Kering executed a series of leadership changes intended to reset the brand’s commercial and creative trajectory. Demna Gvasalia (formerly at Balenciaga) debuted as new creative director in March, with his first collection “La Famiglia” revealed in September to a warm reception from critics and consumers, however this has yet to translate into meaningful revenue growth for the brand. CEO Stefano Cantino also departed in September, replaced by Francesca Belletini, signalling a pivot towards a leader with proven growth credentials in luxury, evidenced by the turnaround she orchestrated at Saint Laurent, to stabilise the struggling brand.
“Saint Laurent also saw revenue declines, at a less severe rate of 8.3% to €2.6bn, however H2 saw sequential improvement due to stronger ready-to-wear and footwear categories. Bottega Veneta emerged as a relative bright spot, with a muted reported decline of 0.4% to €1.7bn and 3% sales growth on a comparable basis, underscoring the strength of the brand’s understated yet desirability-driven product strategy. Bottega announced the departure of CEO Bartolomeo Rongone in January 2026, which may introduce fresh uncertainty to Kering’s shining star.
“Regionally, Asia Pacific experienced a steep decline of 15% on a comparable basis, as demand in mainland China continued to disappoint amid a fragile macroeconomic backdrop and subdued consumer sentiment. Japan also recorded a significant decline of 16% on a comparable basis. The stronger yen, combined with the rebalancing of price differentials between regions sharply reduced the attractiveness of the Japanese market for tourists, and local demand remained weak. Western Europe saw comparable sales decline 10% as luxury demand softened in the face of persistent inflation, elevated interest rates and lower discretionary spending, particularly among aspirational shoppers. North America proved comparatively more resilient, posting a 6% fall in comparable revenue supported by stronger demand from wealthier consumers in the region. The Rest of World remained flat on a comparable basis, boosted by the strength in emerging markets in the Middle East.”
