Kering anticipates a return to growth despite recording another quarter of declining sales, primarily due to challenges faced by its flagship brand, Gucci.
Kering, the luxury goods conglomerate, announced its expectations for a return to growth in 2026 despite experiencing a continued decline in sales. The company reported a 3% decrease in fourth-quarter sales, amounting to €3.9 billion (approximately $4.64 billion), which was slightly better than market estimates. Under the leadership of new CEO Luca de Meo, Kering's top brand, Gucci, suffered a 10% drop in sales, contributing to Kering's overall sales challenges.
Gucci's struggles have drawn attention during this transitional period, with market watchers noting that the brand's performance under a new executive leadership has yet to reflect the full potential of Kering. Still, other brands within Kering's portfolio, including Yves Saint Laurent, Bottega Veneta, and Balenciaga, showed stable or moderate growth year-on-year. Luca de Meo acknowledged that 2025 did not meet expectations and highlighted the need for strategies to leverage Kering’s full market potential in the future.
As Kering strives to turn around its global brand presence, the challenges facing Gucci are a focal point for analysts and investors alike. The company’s performance will likely impact shareholder confidence and brand strategies moving forward as Kering prepares for what it hopes will be a more prosperous return to sales growth in 2026. The market will be closely watching how the leadership adjustments and strategic initiatives unfold in the coming years to avoid further declines in their flagship brand’s performance.
