Search on Fashionbi
Bottega Veneta’s resilience, Gucci’s ongoing reset, and Saint Laurent’s stability highlight diverging brand performance within the Group.
Financials
04 May, 2026
Table of contents
Kering Group dropped its FY 2025 results on the 10th of February 2026, reflecting a challenging year for the global luxury sector as softer consumer demand, weaker tourism flows and continued market normalisation impacted performance across key regions. The owner of Gucci, Saint Laurent, Bottega Veneta and Balenciaga recorded FY 2025 revenue of €14,675 billion, declined by 13% as reported and 10% on a comparable basis compared to 2024.
Despite the decline, the Group showcased an improving momentum during the 2nd half of the year, helped by the tighter operational management, stronger retail conversion and early progress from ongoing organisational and creative restructuring initiatives. Kering Group focused heavily on strengthening governance, streamlining operations, elevating brand positioning and rebuilding financial flexibility ahead of a broader strategic reset expected to unfold through 2026 and beyond.
| Metric (€ billion) | 2022 | YoY | 2023 | YoY | 2024 | YoY | 2025 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenues | 20,351 | - | 19,556 | -3,9% | 17,194 | -12,1% | 14,675 | -14,6% |
| Gross Profit | 15,198 | - | 14,927 | -1,8% | 12,681 | -15,0% | 10,660 | -15,9% |
| Operating Incomes | 5,395 | - | 4,746 | -12,0% | 2,312 | -51,3% | 1,047 | -54,7% |
| Net Incomes | 3,718 | - | 3,074 | -17,3% | 1,227 | -60,1% | 0,140 | -88,6% |
The 4-year income statement trajectory of Kering Group shows the scale of the luxury market slowdown currently affecting the global fashion sector. It also highlights the Group’s increasing exposure to compression in profitability despite weakening demand and ongoing strategic restructuring.
In FY 2022, revenue peaked above €20 billion, supported by strong aspirational spending, post-pandemic luxury acceleration, and exceptional momentum at Gucci and Saint Laurent. However, from FY 2023 onwards, the Group entered a deceleration process as luxury demand normalised globally, particularly across China and entry-level luxury segments.
By 2025, Kering Group revenue had declined to €14,675 billion, representing a contraction of nearly 28% compared to FY 2022. Gross profit followed a similar downsizing, falling from €15,198 billion in 2022 to €10,660 billion in 2025. This reflects weaker product demand, less wholesale performance, elevated raw material costs and continued pressure in leather goods categories.
The sharpest decrease occurred in the operating income. It declined from €5,395 billion in 2022 to just above €1 billion in 2025, reflecting both negative operating leverage and Kering Group’s continued investments in creativity, communication, retail optimisation and brand repositioning despite slowing revenue. Gucci’s prolonged reset and lower productivity in several brands impacted overall profitability throughout the period.
Net income fell nearly 89% year-on-year in FY 2025 to approximately €140 million. Beyond weaker operating performance, profitability was impacted by restructuring charges, organisational transformation costs, selective wholesale rationalisation and strategic investments linked to Kering’s long-term repositioning strategy.
From a broader luxury industry perspective, Kering Group’s financial evolution between FY 2022 and FY 2025 reflects the widening divergence between ultra-high-end luxury players and more fashion-driven conglomerates exposed to aspirational consumer volatility.
| Metric (€ billion) | 2022 | YoY | 2023 | YoY | 2024 | YoY | 2025 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10,487 | - | 9,873 | -5,9% | 7,650 | -22,5% | 5,992 | -21,7% |
| Operating Income | 3,732 | - | 3,264 | -12,5% | 1,605 | -50,8% | 0,966 | -39,8% |
Gucci remained the Group’s largest challenge throughout FY 2025, accounting for 41% of total Group revenue while continuing to experience significant sales pressure across both retail and wholesale channels. Revenue declined 22% as reported to €5,992 billion, while recurring operating income fell 40% year-on-year.
One of the year’s most significant developments came in March 2025, when Kering Group appointed Demna as Gucci’s new Artistic Director following the departure of Sabato De Sarno. The creative transition was seeded in the launch of “La Famiglia”, introduced in September 2025 as the first major expression of Gucci’s evolving design direction.
While financial impact remained limited during FY 2025, Kering Group indicated that the collection contributed to improved brand engagement and stronger retail traction during Q4.
| Metric (€ billion) | 2022 | YoY | 2023 | YoY | 2024 | YoY | 2025 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3,300 | - | 3,179 | -3,7% | 2,881 | -9,4% | 2,643 | -8,3% |
| Operating Income | 1,019 | - | 0,969 | -4,9% | 0,593 | -38,8% | 0,529 | -10,8% |
Compared with Gucci, Saint Laurent delivered a more resilient performance throughout the year. Revenue declined 8% as reported, though trends improved progressively during the second half, with Q4 sales stabilising on a comparable basis.
Performance was supported by strong product execution across footwear and women’s ready-to-wear, alongside continued momentum in North America and improving trends in Western Europe.
Notably, Saint Laurent maintained a strong 20% operating margin despite weaker sector demand, reflecting effective cost discipline and operational efficiency while continuing to invest in stores, clienteling, and collection development. This operational resilience reinforces Saint Laurent’s positioning as one of Kering’s most structurally stable luxury Houses.
| Metric (€ billion) | 2022 | YoY | 2023 | YoY | 2024 | YoY | 2025 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,740 | - | 1,645 | -5,5% | 1,713 | +4,1% | 1,706 | -0,4% |
| Operating Income | 0,366 | - | 0,312 | -14,8% | 0,255 | -18,3% | 0,267 | +4,7% |
Bottega Veneta continued outperforming the wider portfolio of Kering Group in 2025, becoming one of the few major global luxury fashion labels to deliver positive growth during the year. Revenue increased 3% on a comparable basis, supported by strong retail performance in North America and the Middle East, alongside improving trends in Asia-Pacific during the second half.
The House benefited from successful handbag launches, including Campana and Veneta, while ready-to-wear and footwear recorded double-digit growth. Importantly, Bottega Veneta also improved profitability, with recurring operating margin rising to 15,6%.
Its performance reinforces the growing importance of highly focused leather goods strategies, controlled distribution, and elevated brand positioning within today’s luxury market environment.
Asia-Pacific remained Kering Group’s weakest-performing region during FY 2025, with comparable revenue declining 15%. China continued facing subdued luxury demand, while reduced tourist flows negatively impacted both Japan and Western Europe.
In contrast, North America demonstrated relative resilience during the second half of the year, particularly among higher-spending luxury consumers. This dynamic increasingly reflects the industry-wide polarisation between ultra-high-net-worth clientele and more aspirational shoppers.
Kering Group also continued tightening wholesale distribution across several brands, prioritising exclusivity and stronger control over brand environments. Wholesale revenue declined 9% on a comparable basis, partly reflecting deliberate strategic rationalisation.
Beyond financial performance, FY 2025 marked one of the most consequential restructuring periods in Kering Group’s recent history.
In June 2025, the Kering Group appointed Luca de Meo as Chief Executive Officer, formally separating the CEO and Chairman roles for the first time. François-Henri Pinault remained Chairman, while Luca de Meo officially went into leadership in September 2025.
Additional strategic developments included Francesca Bellettini’s appointment as President and CEO of Gucci in September 2025, Pierpaolo Piccioli’s appointment as Artistic Director of Balenciaga in May 2025, strategic real estate monetisation agreements with Ardian completed in January and December 2025, a €4 billion beauty and wellness partnership with L'Oreal SA announced in October 2025, and continued investment throughout 2025 in Kering Eyewear’s industrial capabilities through acquisitions including Visard, Mistral and Lenti.
Collectively, these initiatives reflect a broader effort to build what Kering Group described as a “leaner and faster Group”, focused on restoring profitability, strengthening operational agility, and revising brand desirability.
Kering Group has entered 2026 facing both pressure and opportunity. While macroeconomic conditions remain uncertain, particularly in China, the Group now benefits from improved financial flexibility, lower debt exposure, and clearer organisational direction. Sequential sales improvement during the second half of FY 2025 also suggests that several labels may be approaching stabilisation.
However, Gucci’s turnaround remains central to Kering’s long-term recovery trajectory. The success of Demna’s creative repositioning, combined with tighter distribution, stronger client engagement and elevated product storytelling, will likely determine whether the Group can rebuild growth momentum over the next several years.
At the same time, Bottega Veneta’s sustained strength demonstrates that Kering Group’s portfolio still possesses significant long-term brand equity when creativity, scarcity and execution align effectively.
For the wider luxury industry, Kering Group FY 2025 ultimately reflects a market entering a more mature and selective phase, one where operational discipline, brand desirability and strategic clarity matter more than rapid expansion alone.
Cover Image: The Impression.
Read the full Kering Group report Here.
For a deeper dive into the financial performance of other top luxury brands, explore the
Kering Group Q3 2024 Financial Report here
Kering Group, LVMH and Richemont here, and
Dior H1 2025 Financial Report here.
Find more financial analysis here.