Kering (KER) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was €14.7 billion, down 13% reported and 10% comparable, with sequential improvement in H2 and Q4, and all major brands except Bottega Veneta and Kering Eyewear posting declines.

• Recurring operating income fell 33% to €1.6 billion, with margin down to 11.1% from 14.5% the previous year.

• Strategic actions included portfolio reshaping, cost discipline, store rationalization (75 net closures), and a major partnership with L'Oréal to accelerate the beauty business and entry into wellness and longevity segments.

• Sustainability remained a core focus, with a third consecutive CDP AAA rating and the conclusion of a 10-year strategy.

• Creative renewal and leadership changes across brands, especially at Gucci, Bottega Veneta, and Balenciaga, began to yield positive feedback and momentum.

Financial highlights

• Revenue (ex-Beauté) was €14.7 billion, down 10% comparable and 13% reported; Q4 improved to -3% comparable.

• Recurring operating income was €1.6 billion, with an 11.1% EBIT margin, down 340 bps year-over-year.

• Free cash flow from operations was €4.4 billion, including €2.1 billion from real estate transactions.

• Net financial debt reduced by €2.5 billion to €8 billion.

• Proposed ordinary dividend of €3.00 per share and exceptional dividend of €1.00 per share linked to the Kering Beauté disposal.

Outlook and guidance

• 2026 expected to be a year of growth and margin improvement across all major brands, with a bottom-up budget approach and focus on sustainable brand strategies.

• Further store closures planned (minimum 100 net in 2026), with a targeted 20% reduction in store footprint by 2028.

• Margin improvement anticipated as cost discipline continues and top-line recovers.

• Net debt expected to decrease further with the L'Oréal deal closing in H1 2026, targeting a leverage ratio of 1–1.5x.

• Capital Markets Day in April 2026 will detail the roadmap for transformation and growth.