What: Kering’s 2025 financial results showed a net loss and declining revenue, leading to store closures and a renewed strategic focus.

Why it is important: Gucci’s performance and Kering’s comparison with LVMH and Hermès underscore shifting competitive dynamics in global luxury retail.

Kering’s 2025 financial performance underscores a turbulent period for the French luxury group, which posted a net loss of €29 million after a profit of €1.02 billion the previous year. The group’s revenue dropped 9% in the fourth quarter to €3.91 billion, slightly outperforming analyst expectations but still reflecting significant market headwinds. CEO Luca de Meo responded with decisive restructuring, including €925 million in cost savings, a 9% reduction in operating expenses, and the closure of 75 stores, with further closures anticipated. Gucci, Kering’s leading brand, showed a modest improvement, while Saint Laurent and Bottega Veneta maintained stable or slightly increased sales. The group also streamlined its portfolio by selling real estate assets and reclassifying its beauty division after its sale to L’Oréal.

IADS Notes: Despite these setbacks, de Meo noted early signs of renewed energy in stores and plans to unveil a new strategic roadmap in April. These results highlight the ongoing pressures and evolving strategies within the luxury retail sector as Kering seeks to regain momentum.

Kering Group posts net loss in 2025 as Q4 revenue falls 9%