Struggling Gucci causes concern for parent firm Kering
The company says its struggling Gucci brand has outpaced luxury goods company Kering, with revenue falling 10 percent in the last quarter compared to the same period a year earlier.
The result comes despite the brand’s revenue falling less on a like-for-like basis at the end of the year compared to the third quarter.
Kering’s CEO Luca de Meo, who has only been on the job for a few months, now wants to lead the turnaround of the business.
“Performance in 2025 does not reflect the Group’s true potential,” the former Renault CEO said. Press release It was published on Tuesday.
Measures began to be taken in the second half of the year to strengthen the group’s financial situation and reduce costs.
“On Capital Markets Day, April 16, we will present a clear roadmap to increase the attractiveness of our Luxury Homes and reignite growth with well-defined brand strategies, a more effective organization and strong financial discipline,” De Meo said.
The French company, which also owns brands such as Yves Saint Laurent and Balenciaga, has fallen behind its competitors in recent years.
There has been a decline in the popularity of Gucci products due to the general slowdown in luxury consumption, especially in China.
In 2025 alone, sales of Gucci products have fallen by more than a fifth to just under 6 billion euros ($A10 billion).
The group’s revenue fell 13 percent to 14.7 billion euros.
Adjusted operating profit fell by a third to just over 1.6 billion euros.
Net profit attributable to shareholders fell to 72 million euros, after achieving a surplus of over 1.1 billion euros in the previous year.
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