Struggling brand Gucci has dragged down luxury goods company Kering, with a decline in revenue in the final quarter of 10 per cent compared to the same period of the previous year, the company says.
The result came even though the brand’s revenue fell less on a comparable basis at the end of the year than in the third quarter.
Kering’s chief executive Luca de Meo, who has been in the job for only a few months, now wants to lead a turnaround in the business.
“The performance in 2025 does not reflect the Group’s true potential,” the former Renault chief executive said in a press release issued on Tuesday.
Measures have already been initiated in the second half of the year to strengthen the group’s financial position and reduce costs.
“On April 16, during our Capital Markets Day, we will present a clear roadmap to boost the desirability of our Luxury Houses and reignite growth, with well-defined brand strategies, a more effective organisation and strong financial discipline,” de Meo said.
The French company, which also owns brands like Yves Saint Laurent and Balenciaga, has lagged behind competitors in recent years.
It suffered from a decline in the popularity of Gucci products amid a general slowdown in luxury consumption, especially in China.
In 2025 alone, sales of Gucci products fell by more than a fifth to just under 6 billion euro ($A10 billion).
The group’s revenue dropped by 13 per cent to 14.7 billion euro.
The adjusted operating profit plummeted by a third to just over 1.6 billion euro.
The net profit attributable to shareholders shrank to 72 million euro, after generating a surplus of more than 1.1 billion euro the previous year.
