Kering closed 2025 with 14.7 billion euros in revenue, down 13 percent reported and 10 percent on a comparable basis, per the group's results release dated February 10, 2026. Recurring operating income fell 33 percent to 1.63 billion euros, and the group swung to a net loss for the year. The hardest number belonged to Gucci: roughly 6 billion euros in 2025 revenue, down 22 percent reported.
The market reaction, though, went the other way. Per Investing.com's coverage of the February 10 release, Kering shares rose about 11 percent after the report, because the trajectory inside the annual number showed the reset working: Gucci's comparable revenue decline narrowed from 25 percent in the first half of 2025 to 14 percent in the third quarter, and the fourth quarter beat expectations. Kering itself framed the year as "sequential improvement, unlocking the next phase of sustainable and profitable growth." This article covers a corporate earnings report; it publishes information, not investment advice.
What a Gucci reset actually costs
The 2025 numbers put a price tag on turning around a 10-billion-euro-brand-class house. A creative-direction change, a store-network refit, inventory clean-up and the deliberate pullback from discount-adjacent wholesale all subtract revenue before they add any. Gucci's decline through 2025 was the visible cost of that rebuild — and the narrowing quarterly declines are the first measurable evidence that demand, not just accounting, is following.
The contrast with LVMH's year is instructive. LVMH returned to organic growth in the third quarter of 2025, per its October release, while Kering's annual revenue fell double digits. Both groups faced the same demand environment; the difference is portfolio and timing. Kering concentrated its risk in one house under reconstruction, while LVMH spread a milder downturn across 75 brands.
Related stories: LVMH First Half 2026: 38.6 Billion Euros and Growth That Accelerated · LVMH Q3 2025: The World's Largest Luxury Group Returned to Growth.
Why the fourth quarter mattered more than the annual loss
Luxury turnarounds are judged on the slope, not the level. A net loss in a reset year is close to expected; what is not guaranteed is the demonstration that the decline is decelerating. Kering's fourth-quarter beat — Gucci improving sequentially while the group held margins — is the datum that repriced the shares. Per the group's release, management pointed to that quarter as the proof point for 2026 guidance.
What to watch through 2026
Three markers will tell whether the February optimism holds. First, whether Gucci posts a positive comparable quarter in the first half of 2026 — the earliest credible date for the turn to be official. Second, whether the new store concepts roll out at the pace the capital plan implies, since refits lag the collections. Third, whether Saint Laurent and Bottega Veneta hold single-digit declines; the group's recovery math needs its second-tier houses to be stable so capital and management attention stay on Gucci. For shoppers, one practical note: the reset-year markdown cycle that hollowed out Gucci's pricing in 2024–2025 narrows once the brand turns — which historically means the best relative-value window on a rebuilding house is right at the bottom, not after the headlines turn.