Kering: Financial Reset Year Sees Net Debt Reduced By €2.5bn
Kering's 2025 financial reset delivered lower revenues but improved debt position, as the luxury goods group worked to stabilise its balance sheet following consecutive years of declining sales across its portfolio of fashion houses.
The French conglomerate reported total revenue of €14,675m (US$17.491bn) for the year, down 13% as reported and 10% on a comparable basis.
However, the company achieved a significant reduction in net debt, which stood at €8,000m (US$9.531bn) as of 31 December 2025, down €2,500m (US$2.978bn) year-on-year, forming a central pillar of Kering's financial restructuring as it positions for a return to growth in 2026.
Discussing its 2025 results, released on 10 February 2025, CEO Luca de Meo says: "2025 was the turning point we needed. It was the year we reset our course, made the tough but necessary decisions and laid the foundations for our rebound. The first proof points are visible."
Brand performance and leadership
Kering implemented significant leadership changes across its houses during 2025, appointing Cédric Charbit as CEO of Saint Laurent and Gianfranco Gianangeli as CEO of Balenciaga, with both appointments effective from the beginning of January 2025.
Cédric, previously CEO of Balenciaga, succeeded Francesca Bellettini at Saint Laurent, while Gianfranco moved from his role as Chief Commercial Officer of Saint Laurent to take the helm at Balenciaga.
Saint Laurent posted €2,600m (US$3.097bn) in revenue in 2025, down 8% reported and 6% comparable, but maintained profitability with €529m (US$630m) in recurring operating income and a 20% margin.
Gucci, Kering's flagship label, continued to face headwinds with a 10% decline on a comparable basis in the fourth quarter, while other houses posted flat or moderate growth. The Italian luxury brand welcomed Francesca as its new CEO in 2025, tasked with strengthening Gucci's identity.
Operating margins under pressure
For the overall group, net operating income reached €1,631m (US$1.943bn), with a recurring operating margin of 11.1% versus 14.5% in 2024.
The compression in margins reflects the ongoing challenges facing the luxury sector, although the company's cost control measures could provide support as revenues stabilise.
Recurring net income from continuing operations attributable to the Group was €523m (US$623m), while net income from continuing operations to the Group was less than €29m (US$34.5m).
The fourth quarter showed signs of moderating declines, with revenue down 9% as reported and 3% on a comparable basis.
Luca says in a company statement that the year's performance "does not reflect the Group's true potential". He added: "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."
Capital markets focus
Luca announced that Kering's Capital Markets Day will be on 16 April, where the luxury goods conglomerate will "unveil a focused and ambitious roadmap, one designed to reignite momentum, strengthen the appeal of each of our Houses, and deliver sustainable, long-term value".
The event will provide investors with greater visibility on the company's strategy to return to growth and rebuild margins. "The future is not given; we craft it," Luca says. "And 2026 is the year we start to turn potential into performance."
Luca added that Kering is progressing in 2026 "with a clear-eyed ambition and a fighting spirit" with the goal to "return to growth and rebuild our margins".
