Kering Sa Stock Earnings Reports

Kering reported 2025 as a low point but a deliberate inflection: full-year revenue (ex-Kering Beaute) was EUR 14.7bn, down 10% on a comparable basis, with sequential improvement through the year and Q4 at -3%. Recurring EBIT was EUR 1.6bn (11.1% margin), down 33% year‑on‑year; free cash flow was EUR 4.4bn including real estate transactions (EUR 2.3bn excluding). Net financial debt fell by EUR 2.5bn to EUR 8.0bn year‑end, and the planned sale/partnership with L'Oreal (closing H1 2026) will bring ~EUR 4bn cash, further strengthening the balance sheet. Management implemented significant discipline: ~EUR 925m of cost savings in 2025, 75 net store closures in 2025 with at least 100 net closures planned for 2026, and an 8% inventory reduction. Strategic moves: partnership with L'Oreal to accelerate beauty and expand into wellness/longevity, and progressive acquisition of Raselli to scale jewelry capabilities. Brand highlights: Gucci remains the largest house and is beginning to show early signs of product-led recovery but still is the primary turnaround focus; Saint Laurent and Bottega Veneta are stronger and more growth-ready; Balenciaga and Alexander McQueen require further work (McQueen restructuring underway). Outlook and capital allocation: management expects 2026 to be a constructive year — a return to growth and margin improvement, executed gradually quarter-to-quarter. Leverage is expected to fall materially post-closing of the Kering Beaute transaction (Armelle indicated a pro-forma leverage range of ~1.0–1.5x). Board proposed a EUR 3.00 ordinary dividend and an exceptional EUR 1.00 dividend tied to the Beaute disposal. Key near-term catalysts: Capital Markets Day on April 16 (strategy/details by house), Q1 revenue release (April 14), and closing of the L'Oreal deal in H1 2026. Main investor considerations/risks: recovery is early and fragile, Gucci's rebound is critical to group momentum, continued store rationalization will dent short-term sales while improving long-term density, and macro/tourism (esp. APAC/China) and currency effects remain meaningful.