The recent appointment of Luca de Meo as CEO in September 2024 signals a new direction, aiming to enhance operational efficiency and brand performance. 2026 is expected to be a year of growth and margin improvement, with a focus on brand strategy, efficiency, and execution. The company is undergoing a strategic transformation to address its heavy reliance on Gucci and rebuild profitability after challenging 2025 results.
Cyborg Score Rationale
Kering posted weaker 2025 results after sales and profits slid across much of its portfolio, with revenue declining 13% to €14.67bn on a reported basis. While new leadership is driving cost controls and margin improvement initiatives, near-term headwinds from Gucci's turnaround and overall luxury sector weakness create near-term uncertainty despite positive strategic direction.
Top Insights
Gucci's brand is still in the early stages of a turnaround but shows improving trends—in the fourth quarter, constant currency sales were down 10% (a 15% decline in the third quarter and negative 25% in the first half of the year).
Retail revenue across the group fell by 11% on a comparable basis, with Gucci revenue sliding 22% to €5.99bn.
Bottega Veneta reported €1.70bn of revenue, up by 3% on a comparable basis, and improved its margin to 15.6%.
In October 2025, Kering sold its beauty division, which includes Creed, to L'Oréal in a deal that values the segment at approximately $4 billion.
Named Competitors
LVMH — World's largest luxury conglomerate with diverse brand portfolio
Richemont — Global luxury goods and jewelry conglomerate
Capri Holdings — Luxury fashion group operating Versace, Jimmy Choo, Michael Kors
Hermès — Ultra-premium luxury brand with heritage leather goods
Recent Developments
(February 2026) Gucci Creative Director Demna's first collection to be shown February 27, 2026
(October 2025) Kering sells Beauté division to L'Oréal for ~$4 billion to optimize portfolio
(January 2026) Announced exceptional €1 per share dividend from Beauté proceeds