PARIS – Kering posted a net loss in 2025 as chief executive officer Luca de Meo implemented radical restructuring measures to turn around the ailing French luxury group. 

The owner of brands including Gucci, Saint Laurent and Balenciaga said revenues in the three months to Dec. 31 fell 9 percent at reported exchange rates to 3.91 billion euros, representing a decline of 3 percent in comparable terms.

The figures beat a consensus of analyst estimates, which had called for a 5 percent organic drop in reported sales to 3.83 billion euros. 

Gucci also showed a sequential improvement, with organic revenue declining 10 percent, slightly better than the 11 percent decline forecast by analysts, as creative director Demna’s arrival revived interest in the group’s star brand. 

For the full year, Kering posted a net loss of 29 million euros, versus a net profit of 1.02 billion euros in 2024, reflecting non-recurring items mostly related to optimization and restructuring measures. 

Recurring operating profit was down 33 percent to 1.63 billion euros, and the recurring operating margin fell to 11.1 percent in 2025 from 14.5 percent the previous year. Gucci accounted for 59 percent of the group’s operating profit last year.

“The performance in 2025 does not reflect the group’s true potential. In the second half, we took decisive actions – strengthening the balance sheet, tightening costs, and making strategic choices that lay the foundations for our next chapter,” de Meo said in a statement. 

He is due to present his strategic roadmap at a Capital Markets Day in Florence, Italy, on April 16.

“As we enter 2026, the entire team is fully committed to delivering a leaner, faster Kering, enhancing brand positioning and sales, rebuilding margins, and strengthening cash generation to ensure sustainable, long-term value creation,” de Meo added.

The results marked an improvement from the third quarter, when group revenue fell 10 percent at reported exchange rates and 6 percent on an underlying basis.

Most of Kering’s luxury divisions saw organic sales growth in the fourth quarter.

Saint Laurent was flat, and the “other houses” group, which includes Balenciaga and Alexander McQueen, reported a 3 percent increase. Bottega Veneta also saw a 3 percent organic sales rise.

The Kering eyewear and corporate division reported a 2 percent increase in comparable sales. 

The figures for 2025 and 2024 were restated to reflect the sale of Kering Beauté to French beauty giant L’Oréal, expected to close in the first half of 2026. The beauty division’s activities have been reclassified as discontinued operations.

By comparison, organic sales at LVMH Moët Hennessy Louis Vuitton’s key fashion and leather goods division fell 3 percent year-over-year in the fourth quarter, broadly in line with consensus estimates. 

Hermès International is due to report fourth-quarter results on Thursday.