Kering Plans Transformation as 2025 Sales Sink 13%

An 18-karat rose and white gold Pomellato “Nudo” toi et moi ring with diamonds and London blue topaz. The brand’s parent company Kering reported declining sales in its fourth quarter and for the full year.

New York—Kering posted double-digit declines in 2025 as the luxury titan prepares for a transformation.

For the full year, revenue totaled €14.68 billion ($17.47 billion), down 13 percent (10 percent on a comparable basis).

In the fourth quarter ending Dec. 31, revenue fell 9 percent (3 percent on a comparable basis) to €3.91 billion ($4.65 billion).

“The performance in 2025 does not reflect the group’s true potential,” said Kering CEO Luca de Meo. 

“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.”

On April 16, during its Capital Markets Day, the company will present a new roadmap to get back to growth, he said, with “well-defined brand strategies, a more effective organization, and strong financial discipline.”

Its star brand Gucci weighed on its balance sheet, with sales down 22 percent for the year and 16 percent in Q4.

However, its jewelry brands, which include Boucheron, Pomellato, and Qeelin, posted strong growth in Q4, said Kering.

Boucheron’s sales were up double digits, while Pomellato maintained its “steady trajectory.” Dodo’s sales did well while Qeelin held onto its strong momentum.

These brands fall into Kering’s “Other Houses” division alongside Alexander McQueen and Balenciaga. 

Revenue in the segment totaled €789 million ($939 million) in Q4, down 4 percent (up 3 percent on a comparable basis).

Full-year revenue totaled €2.9 billion ($3.5 billion), down 10 percent (down 6 percent on a comparable basis).

Revenue from Kering’s directly operated stores, which includes its e-commerce sites, was down 11 percent year-over-year in 2025.

Revenue in the wholesale and “other” segment was down 9 percent. While its eyewear segment performed well, that was offset by its luxury houses’ effort to be more exclusive with distribution.

Looking at its performance by region, Kering’s Q4 sales in North America were up 2 percent on a comparable basis year-over-year. However, sales in North America were down 5 percent in 2025.

North America was Kering’s third-largest market by revenue percentage in the first half, accounting for 24 percent of total revenue, up from 23 percent in the prior period.

As for its store network, Kering operated 1,719 stores, with 75 net closures in 2025.

Looking to the year ahead, the retailer is focused on growth amid “a still uncertain macroeconomic environment,” said the company.

“Kering enters 2026 with a clear objective: to return to growth and improve margins this year.”