Paris (France) (AFP) – The French luxury giant Kering, owner of Gucci, launched in a restructuring since the arrival in September of its new general director Luca de Meo, announced on Tuesday sales down 13% in 2025 and a net profit divided by more than ten.

Published on: 02/10/2026 - 04:43 Modified on: 02/10/2026 - 11:49

In 2025, Kering's net profit amounted to 72 million euros and its sales to 14.67 billion euros, results still weighed down by Gucci.

“The group's performance in 2025 does not reflect its true potential,” according to Luca de Meo, quoted in a press release.

“On April 16, during our Capital Markets Day (a day dedicated to investors, editor’s note), we will present a clear roadmap to (...) relaunch growth, with precisely defined brand strategies, a more efficient organization and rigorous financial discipline.”

“It’s a two-speed year,” he commented during a press briefing. “We saw signs of rebound in the market” from the third quarter and “this takes us into 2026 with a form of optimism”.

After the announcement of the $4 billion sale to L'Oréal of its Beauty division which will be finalized in the first half of 2026, Kering restated its 2025 and 2024 results excluding this division.

Concerning Gucci, whose sales fell by 22% to 6 billion euros over the year, the group highlights a "sequential improvement" of the brand, that is to say over the last quarters, in particular thanks to good sales of handbags.

The market also welcomed Kering's less bad than expected fourth quarter. The stock climbed more than 12% around 11:30 a.m. on the Paris Stock Exchange.

Luca de Meo has the difficult task of turning around the luxury group.

The former Renault manager has already made changes, notably appointing Kering deputy director Francesca Bellettini at the head of Gucci, whose creative direction has also been changed with the arrival of stylist Demna, who came from Balenciaga, another Kering brand.

“The level of bullshit has decreased”

Gucci, the group's flagship brand, alone accounted for 41% of annual sales and more than 60% of operational profitability, but has failed to recover after years of decline.

2026 will be the year “where Kering begins to reconquer its territory”, assures its general director who has already left his mark on the group.

“The level of bullshit has decreased enormously, we say things to each other and attack them one after the other,” he said.

“My logic is to get people to work together,” he added. Luca de Meo intends in particular to develop a “portfolio strategy” for all the group's brands (Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, etc.) which until now worked in total autonomy.

“We are not all going to be on the same ball”, he explained, there will be “a kind of hierarchy of brands”.

The group also intends to close around 150 stores this year, a third of which will be Gucci stores.

“This does not mean that we are not going to reopen” shops, said Mr. de Meo. “My goal is to avoid loss-making stores.” This restructuring of stores will mainly concern Asia but also the United States.

To reduce its dependence on Gucci, the group should rely on its Yves Saint Laurent brand. The group is working in particular to develop the brand on the Chinese market.

Smaller fashion brand McQueen has launched a strategic review and is considering job cuts at its London headquarters as well as in Italy. “It’s a brand that represents 5%” of turnover “and has big losses,” explained Luca de Meo. “We are lowering the sail, we are repositioning, we are refocusing,” added the CEO of Kering.

“I don’t do charity, we manage a company,” he stressed.

© 2026 AFP

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