French luxury giant Kering reported a 9% decline in fourth-quarter revenue to €3.91 billion, with Gucci dragging down performance as the brand's comparable sales fell 10% in the quarter. The luxury conglomerate's annual revenue dropped 13% to €14.68 billion, while recurring operating income plunged 33% to €1.63 billion, trimming operating margin to 11.10% from 14.50% a year earlier.

Gucci, which accounts for roughly 40% of Kering's sales, generated €5.99 billion in annual revenue, down 19% on a comparable basis, with recurring operating income sliding 40% to €0.97 billion. The brand's struggles contrast with Bottega Veneta's 3% comparable sales increase to €1.71 billion, driven by 5% retail growth and momentum in North America and the Middle East. Saint Laurent maintained a 20% operating margin despite 6% comparable revenue decline to €2.64 billion.

Kering's net debt stood at €8 billion at year-end, down from €10.50 billion, while free cash flow from operations totaled €4.40 billion. The company proposed an ordinary dividend of €3 per share and an exceptional €1 dividend linked to the planned sale of Kering Beauté to L'Oréal. CEO Luca de Meo said the group expects to return to growth and improve margins in 2026, with a strategic roadmap to be presented at its Capital Markets Day on April 16.