Shares of French luxury conglomerate Kering jumped as much as 13% during Paris trading on Wednesday, following the release of its 2025 financial results. The stock settled around an 11% gain, reaching approximately €289, as investors reacted to performance metrics that surpassed pessimistic forecasts.
Financial Highlights and Market Reaction
The company reported a 10% decline in full-year comparable revenue to €14.675 billion. Recurring operating income, excluding one-time items, stood at €1.631 billion. Net debt was reported at €8 billion. For the fourth quarter, group revenue fell 3% on a comparable basis.
Investor optimism was primarily driven by the performance of flagship brand Gucci. Its fourth-quarter sales decreased by 3% on a constant-currency basis, a result that was less severe than the market had anticipated. CEO Luca de Meo characterized the nascent recovery as "early" and "fragile," while analysts noted the figures at least indicated a positive "direction of travel."
Strategic Moves and Forward Guidance
Kering's board proposed a total dividend of €4.00 per share for 2025, consisting of an ordinary dividend of €3.00 and an exceptional dividend of €1.00. This payout is subject to shareholder approval at the annual meeting scheduled for May 28.
All eyes are now on the company's Capital Markets Day scheduled for April 16, where management is expected to unveil a detailed strategic roadmap and financial targets. Prior to that, the market will scrutinize Gucci's upcoming Milan fashion show later this month for signs that its creative overhaul is gaining traction.
The positive sentiment around Kering provided a lift to the broader European luxury sector, with peers including Hermès and LVMH also trading higher, outperforming a stagnant wider market.
Looking ahead, key focuses for investors include early 2026 trading data to assess cost management efforts, the finalization of a beauty licensing deal with L'Oréal targeted for the first half of 2026, and the future of the Gucci beauty license currently held by Coty, which expires in 2028.
