Kering (KER) investor relations material

Strategic direction and financial performance

• Pursuing sustainable growth with a goal to more than double the FY 2025 recurring operating margin in the mid-term and achieve ROCE above 20%.

• Reset, rebuild, and reclaim strategy aims for a leaner operating model by 2026, topline growth by 2028, and leadership in desirability and efficiency by 2030.

• 2025 recurring operating income reached €1.6bn on €14.7bn revenue, with an 11.1% margin.

• Capital allocation targets capex at 5-6% of revenue and a ~50% payout ratio of recurring net income.

Sustainability and environmental impact

• Achieved a 34% reduction in greenhouse gas emissions (scopes 1, 2, 3) from 2022 to 2025.

• Net zero target by 2050, with SBTI-validated interim targets for 2033 and 100% renewable electricity since 2022.

• Regenerated or protected over 1 million hectares through nature and climate initiatives.

• 97% traceability for key raw materials and 86% alignment with sustainability standards.

• Recognized as a top ESG performer, included in all major ESG ratings and indices.

Innovation and circularity

• Material Innovation Lab offers 8,000+ sustainable materials, supporting next-gen luxury with alternative and regenerative materials.

• Targeting 20% regenerative and 40% alternative materials in ready-to-wear by 2035, and reducing leather dependency by 30% by 2028.

• Circularity initiatives include repair, resale, and recycling services, with investments in platforms like Vestiaire Collective and ReValorem.