Kering (KER) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was €14.7 billion, down 13% as reported and 10% on a comparable basis, with Q4 showing sequential improvement; all major brands except Bottega Veneta and Kering Eyewear posted declines.

• Recurring operating income fell 33% to €1.6 billion, with margin down to 11.1% from 14.5% the previous year.

• Strategic actions included cost optimization, 75 net store closures, 8–9% reduction in group operating expenses, and partnerships such as the L'Oréal deal and Raselli Franco acquisition.

• Sustainability remains a core advantage, with a CDP AAA rating for the third consecutive year.

• Creative and leadership renewal is underway, with new appointments and product strategies at key houses.

Financial highlights

• Free cash flow from operations reached €4.4 billion, including €2.1 billion from real estate transactions; net financial debt reduced by €2.5 billion to €8 billion.

• Capex (excluding real estate) was €792–800 million, representing a 5.4% capex-to-sales ratio.

• Proposed ordinary dividend of €3.00 per share and exceptional dividend of €1.00 per share linked to the Kering Beauté transaction.

• Forex was a 3-point headwind, mainly due to euro strength.

• Retail accounted for 76% of revenue, down 11% comparable; e-commerce was 11% of retail sales, down 12%.

Outlook and guidance

• 2026 is expected to be a year of growth and margin improvement, with a focus on brand strategy, efficiency, and execution.

• Store rationalization will continue, with at least 100 net closures planned in 2026.

• Net debt is expected to decrease further with the L'Oréal deal, targeting a leverage ratio of 1–1.5.

• Ambition to resume dividend increases in 2026, with a proposed €3 per share dividend and €1 exceptional dividend.

• Capital Markets Day in April 2026 will detail the roadmap for transformation and growth.