Kering Group's Q4 sales down 3% year-on-year, Gucci sales decline for tenth consecutive quarter

French luxury giant Kering reported on Tuesday that its fourth-quarter sales decline was smaller than market expectations. Meanwhile, investors are awaiting details on CEO Luca de Meo's plan to revive the struggling Gucci brand.

The group’s fourth-quarter sales reached 3.9 billion euros (approximately 4.64 billion USD), down 3% year-over-year on a currency-adjusted basis. This figure is better than the average analyst expectation of a 5% decline.

The group’s Gucci brand saw comparable sales fall 10% in the fourth quarter, slightly better than analysts’ expectation of a 12% decline. This marks the 10th consecutive quarter of declining sales for the brand.

Kering stated that, excluding one-off proceeds from real estate sales, the company's operating cash flow last year decreased by 35% to 2.3 billion euros.

Kering’s operating profit for fiscal year 2025 was 1.63 billion euros, only about one-third of its 2022 level. The group’s overall operating profit margin fell to 11%. Gucci’s operating profit margin dropped to 16%, compared to 28% and 36% three years ago, respectively.

In contrast, competitor LVMH achieved a 22% profit margin last year despite a slowdown in the overall luxury market, with its leather goods and fashion division (including Louis Vuitton and Dior) reaching a profit margin of 35%.

Editor: Yu Jian SF069