{"id":18749,"date":"2026-02-10T09:05:37","date_gmt":"2026-02-10T09:05:37","guid":{"rendered":"https:\/\/readtrends.com\/en\/kering-gucci-ceo-revival\/"},"modified":"2026-02-10T09:05:37","modified_gmt":"2026-02-10T09:05:37","slug":"kering-gucci-ceo-revival","status":"publish","type":"post","link":"https:\/\/readtrends.com\/en\/kering-gucci-ceo-revival\/","title":{"rendered":"Gucci-owner Kering jumps 13% as new CEO maps revival, sales beats estimates &#8211; CNBC"},"content":{"rendered":"<article>\n<p>Kering, the Paris-based luxury group that owns Gucci, Yves Saint Laurent, Bottega Veneta and Balenciaga, saw its shares surge about 13% on Tuesday after reporting a mixed quarter and outlining a turn\u2011around plan under new CEO Luca de Meo. Fourth\u2011quarter comparable sales fell 3% to \u20ac3.9 billion and full\u2011year 2025 sales declined 10% to \u20ac14.7 billion, yet results slightly outperformed consensus and management signalled a return to growth in 2026. Gucci continued to be the primary drag, posting a 10% comparable sales fall in the quarter, while other houses were flat or showed modest growth. Investors reacted positively to De Meo\u2019s early strategic moves \u2014 including a \u20ac4 billion sale of the beauty business \u2014 and to the promise of further detail at a Capital Markets Day in April.<\/p>\n<h2>Key takeaways<\/h2>\n<ul>\n<li>Kering reported Q4 comparable sales of \u20ac3.9bn, down 3% year\u2011over\u2011year, slightly ahead of FactSet estimates.<\/li>\n<li>Full\u2011year 2025 sales fell 10% to \u20ac14.7bn and recurring operating income dropped 33%, pushing the operating margin down to 11.1%.<\/li>\n<li>Gucci remains the largest headwind with a 10% comparable sales decline in Q4, marginally better than consensus.<\/li>\n<li>Shares jumped as much as 14% intraday and were last seen up about 11%, despite a nearly 14% year\u2011to\u2011date decline before the move.<\/li>\n<li>Management intends to present a longer\u2011term plan at Capital Markets Day in April and expects a return to growth and margin improvement in 2026.<\/li>\n<li>Deleveraging actions include the agreed sale of the beauty division to L&#8217;Or\u00e9al for \u20ac4bn to cut net debt and refocus on fashion.<\/li>\n<li>Artistic direction changes at Gucci \u2014 including the appointment of Demna and his \u201cLa Famiglia\u201d collection \u2014 are intended to restore desirability.<\/li>\n<\/ul>\n<h2>Background<\/h2>\n<p>The luxury sector enjoyed a surge in demand during the Covid\u201119 years, driven by wealthy consumers and increased global spending, which many houses monetized with higher prices. That upswing left several groups with elevated price points and a larger installed base of premium stock, which, combined with softer post\u2011pandemic demand, has complicated re\u2011engagement with some customer segments. China, once a primary growth engine for luxury, has been notably weaker, removing a major demand tailwind and pressuring revenues across the industry.<\/p>\n<p>Kering has faced those headwinds alongside strategic missteps that analysts say eroded momentum at Gucci, its flagship brand. In response, the company replaced long\u2011standing leadership with Luca de Meo \u2014 an external hire with a prior record in the automotive sector, including a turnaround role at Renault \u2014 who has signalled an active overhaul of operations, creative direction and the balance sheet. The group is emphasizing house\u2011by\u2011house fixes: creative repositioning at Gucci, selective investment in growth categories and disposals to reduce debt.<\/p>\n<h2>Main event<\/h2>\n<p>On Tuesday Kering reported Q4 comparable sales of \u20ac3.9 billion, a 3% decline from the prior year but slightly ahead of the consensus view. Gucci\u2019s comparable sales fell 10% in the quarter, while the rest of the portfolio produced flat to modest year\u2011on\u2011year gains. The shortfalls dragged full\u2011year sales to \u20ac14.7 billion, down 10% from 2024, and recurring operating income fell by a third, compressing the group margin to 11.1%.<\/p>\n<p>Management framed the quarter as a transitional phase rather than an end state. De Meo acknowledged 2025 \u201cwas not the year we wanted\u201d and stressed decisive measures taken in the second half to correct course. The company confirmed the \u20ac4 billion sale of its beauty business to L&#8217;Or\u00e9al \u2014 a move explicitly aimed at lowering net debt and sharpening focus on fashion and accessories.<\/p>\n<p>The market rewarded those actions. Kering shares spiked as much as 14% intraday and traded about 11% higher at the time of the release, reversing part of earlier losses for the year. The positive sentiment extended to peers: Burberry, Herm\u00e8s, Brunello Cucinelli, LVMH and Richemont all rose on the session, reflecting investor hopes for broader industry stabilization.<\/p>\n<h2>Analysis &#038; implications<\/h2>\n<p>Financially, the near\u2011term picture remains challenging: a 33% drop in recurring operating income and an 11.1% margin show how revenue weakness quickly translates into profitability pressure in luxury, where operating leverage matters. The beauty disposal improves balance\u2011sheet flexibility and reduces leverage, but it also trims diversification \u2014 putting greater weight on the success of fashion and leather goods executions.<\/p>\n<p>Strategically, De Meo is pursuing a classic playbook: reset desirability through creative leadership (Demna at Gucci), cut costs and simplify the portfolio. Investors will scrutinize how quickly product\u2011level improvements and marketing initiatives convert to traffic and sell\u2011through, especially in Gucci, which accounts for a disproportionate share of group revenue. Timing matters: consensus expects some brands to return to growth in FY26, but that outcome depends on both creative reception and macro demand recovery.<\/p>\n<p>Entry into adjacent segments such as wellness and longevity and a planned jewelry strategy reflect a search for new revenue streams and higher\u2011growth categories. These moves could diversify future growth drivers, but they will require capital and clear positioning to avoid diluting focus on the core fashion houses. Ultimately, margin recovery will likely combine revenue growth with targeted cost savings; investors are watching for concrete, quantifiable targets at April\u2019s Capital Markets Day.<\/p>\n<h2>Comparison &#038; data<\/h2>\n<figure>\n<table>\n<thead>\n<tr>\n<th>Metric<\/th>\n<th>Q4 2025<\/th>\n<th>FY 2025<\/th>\n<th>Change<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Comparable sales<\/td>\n<td>\u20ac3.9bn<\/td>\n<td>\u20ac14.7bn<\/td>\n<td>Q4 -3% \/ FY -10%<\/td>\n<\/tr>\n<tr>\n<td>Gucci comparable sales<\/td>\n<td>\u2014<\/td>\n<td>\u2014<\/td>\n<td>Q4 -10%<\/td>\n<\/tr>\n<tr>\n<td>Recurring operating income<\/td>\n<td>\u2014<\/td>\n<td>\u2014<\/td>\n<td>Down 33% YoY<\/td>\n<\/tr>\n<tr>\n<td>Operating margin<\/td>\n<td>\u2014<\/td>\n<td>\u2014<\/td>\n<td>11.1% (FY)<\/td>\n<\/tr>\n<tr>\n<td>Beauty sale<\/td>\n<td colspan=\"2\">\u20ac4.0bn<\/td>\n<td>To L&#8217;Or\u00e9al<\/td>\n<\/tr>\n<tr>\n<td>Share move (intraday)<\/td>\n<td colspan=\"2\">+14% peak, ~+11% post\u2011close<\/td>\n<td>YTD -14% before move<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>The table condenses reported figures and market moves cited by management and analysts. The company\u2019s guidance is intentionally limited ahead of a detailed strategic presentation in April, which should provide more granular targets for revenue, margin and debt reduction.<\/p>\n<h2>Reactions &#038; quotes<\/h2>\n<p>Management and analysts offered cautious optimism while noting the work ahead. On the earnings call De Meo framed 2025 as a shortfall and highlighted ongoing actions to reposition the group.<\/p>\n<blockquote>\n<p>&#8220;2025 was not the year we wanted. It didn&#8217;t reflect the full potential of Kering, and we all know it.&#8221;<\/p>\n<p><cite>Luca de Meo, CEO<\/cite><\/p><\/blockquote>\n<p>De Meo emphasized decisive action since mid\u2011year and pointed to the beauty disposal and creative changes at Gucci as early moves to restore momentum. Analysts stressed that the results show incremental improvement but left the critical question of whether an inflection to sustained growth is now likely.<\/p>\n<blockquote>\n<p>&#8220;These results point to a slight improvement across the Kering brand portfolio \u2014 whether this could be a precursor for an inflection to growth in FY26E remains the key debate.&#8221;<\/p>\n<p><cite>Luca Solca, Bernstein (analyst)<\/cite><\/p><\/blockquote>\n<p>Market strategists also flagged operational levers such as cost savings and merchandising rationalization as central to margin recovery; Jefferies highlighted the potential for material cost reductions as a focal point for investor scrutiny.<\/p>\n<blockquote>\n<p>&#8220;Closing stages of 2025 confirm gradually reducing pressures at a time of more supportive industry conditions, with considerable cost savings potential an inevitable area of focus.&#8221;<\/p>\n<p><cite>James Grzinic, Jefferies (analyst)<\/cite><\/p><\/blockquote>\n<aside>\n<details>\n<summary>Explainer: key terms<\/summary>\n<p>Comparable sales measure revenue for stores and channels open for a comparable period, excluding effects from acquisitions and closures to show like\u2011for\u2011like trends. Recurring operating income reflects the profit from continuing operations before non\u2011recurring items; it helps assess underlying profitability. Deleveraging means reducing net debt, often by selling non\u2011core assets or using proceeds to pay down borrowings. Capital Markets Day is an investor presentation where management typically lays out medium\u2011term targets, capital allocation and strategic priorities. \u201cDesirability\u201d in luxury refers to brand prestige, product appeal and consumer demand that enable premium pricing and sustained growth.<\/p>\n<\/details>\n<\/aside>\n<h2>Unconfirmed<\/h2>\n<ul>\n<li>Whether Gucci will return to sustained growth in FY26 remains uncertain; current forecasts vary by house and assume improving consumer demand.<\/li>\n<li>The scale and timeline of expected cost savings have not been disclosed and remain to be quantified at the April Capital Markets Day.<\/li>\n<li>The commercial impact and timetable for new initiatives in wellness, longevity and jewelry are unproven and dependent on execution and market reception.<\/li>\n<\/ul>\n<h2>Bottom line<\/h2>\n<p>Kering\u2019s latest results show a company in transition: sales and profits were weaker in 2025, but management\u2019s early actions \u2014 notably the beauty sale, creative changes at Gucci and a promise of stricter cost discipline \u2014 have been favourably received by markets. The share rally reflects investor hope that these steps can accelerate a recovery, but the evidence is nascent and hinges on execution through 2026.<\/p>\n<p>Investors should watch for measurable targets at the Capital Markets Day in April: explicit revenue and margin tranches, quantified cost\u2011saving programs and timelines for new category entries. If management can demonstrate credible, house\u2011level progress at Gucci and a clear path to deleveraging, market confidence is likely to strengthen; absent that, optimism may prove transitory.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/gucci-kering-earnings-stock-sales-q4-fy-new-ceo.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a> (financial news \/ original earnings coverage)<\/li>\n<\/ul>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Kering, the Paris-based luxury group that owns Gucci, Yves Saint Laurent, Bottega Veneta and Balenciaga, saw its shares surge about 13% on Tuesday after reporting a mixed quarter and outlining a turn\u2011around plan under new CEO Luca de Meo. Fourth\u2011quarter comparable sales fell 3% to \u20ac3.9 billion and full\u2011year 2025 sales declined 10% to \u20ac14.7 &#8230; <a title=\"Gucci-owner Kering jumps 13% as new CEO maps revival, sales beats estimates &#8211; CNBC\" class=\"read-more\" href=\"https:\/\/readtrends.com\/en\/kering-gucci-ceo-revival\/\" aria-label=\"Read more about Gucci-owner Kering jumps 13% as new CEO maps revival, sales beats estimates &#8211; CNBC\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":18746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"Kering jumps as new CEO maps revival \u2014 Insight","rank_math_description":"Kering shares surged ~13% after Luca de Meo outlined a turnaround; Q4 sales were \u20ac3.9bn (-3%) and 2025 sales fell 10% to \u20ac14.7bn, with a plan due at April\u2019s Capital Markets Day.","rank_math_focus_keyword":"Kering,Gucci,Luca de Meo,luxury turnaround","footnotes":""},"categories":[2],"tags":[],"class_list":["post-18749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-stories"],"_links":{"self":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/18749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/comments?post=18749"}],"version-history":[{"count":0,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/18749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media\/18746"}],"wp:attachment":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media?parent=18749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/categories?post=18749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/tags?post=18749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}