Gucci sales fall as Kering seeks turnaround under new CEO

Published Tue, Feb 10, 2026 · 05:51 PM

[PARIS] Gucci sales fell in the final months of last year as Kering struggles to revive its biggest brand.

Comparable revenue at Gucci tumbled 10 per cent in the fourth quarter, Kering said in a statement on Tuesday (Feb 10), the 10th consecutive quarter of declines. Analysts were expecting a slide of 10.4 per cent.

Luca de Meo took over as Kering’s chief executive officer in September as the French group – which also owns Yves Saint Laurent and Balenciaga – set out to revive its fortunes. The company, controlled by the Pinault family, has underperformed rivals in recent years, hurt by a drop in the popularity of Gucci’s products amid a broader slowdown in luxury consumption, especially in China.

Hopes the luxury industry was poised to emerge from its slump were dealt a setback last month, when larger rival LVMH – owner of Louis Vuitton and Christian Dior – posted disappointing results for the final quarter of last year. Billionaire Bernard Arnault, the group’s CEO, gave a somewhat downbeat outlook for the year.

Kering shares have fallen by 14 per cent this year. The stock rallied 26 per cent in last year as investors bet a long-awaited recovery would take root under De Meo, who formerly led a turnaround at carmaker Renault.

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

Gucci’s recurring operating income fell 40 per cent to 966 million euros (S$1.45 billion) last year, above the 911 million euros analysts were expecting.

Kering made sustainable cost savings in 2025, chief financial officer Armelle Poulou told reporters on a call, with a net reduction of 75 boutiques for the company as a whole.

Gucci will hold the debut show of designer Demna later this month during Milan fashion week, an event that will be scrutinised by stylists and investors alike. The Italian label accounted for about 60 per cent of Kering’s profit last year.

Poulou said last quarter’s performance at Gucci was positive for the handbag category in particular.

While De Meo won’t unveil his strategic vision until April, he’s shown he can move quickly. He shook up the leadership at Gucci in September, naming company veteran Francesca Bellettini CEO of the brand. In October, he announced a 4 billion euro sale of Kering’s beauty business to L’Oreal to reduce debt levels. Kering’s smaller fashion label Alexander McQueen is also proceeding with job cuts in Italy.

Kering will pay an exceptional dividend of 1 euro a share following the closure of the beauty sale, which is expected in the first half. BLOOMBERG