France · Delayed Price · Currency is EUR Kering Earnings Call Transcripts
Fiscal Year 2026
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The meeting reviewed a challenging 2025 with declining revenue but highlighted early signs of recovery, strategic transformation, and strong cost discipline. All resolutions, including board changes, compensation, and dividends, were approved, and the company reaffirmed its focus on profitable growth, sustainability, and innovation.
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A comprehensive transformation is underway, focusing on operational efficiency, brand desirability, and disciplined growth. Key initiatives include retail network optimization, AI-driven operations, and targeted investments in core brands, jewelry, and eyewear. The group aims to double EBIT margin, restore market share, and achieve sustainable, high-quality growth by 2030.
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Q1 revenue stabilized year-on-year on a comparable basis, with North America leading growth and strong performances in jewelry and eyewear. Strategic moves enhanced financial flexibility, while the outlook targets gradual improvement and margin expansion through 2026.
Fiscal Year 2025
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2025 marked a low point with revenue down 10% year-over-year, but sequential improvement in H2 and Q4 signals early turnaround. Strategic actions include cost discipline, store rationalization, and a major L'Oréal partnership, with 2026 expected to bring growth and margin recovery.
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Q3 saw a 10% reported and 5% comparable revenue decline, but sequential improvement across all regions, especially North America and Western Europe. Major creative launches and a €4bn L'Oréal deal support future growth, while cost efficiency and store optimization remain key priorities.
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The meeting marked a major governance shift with the appointment of Luca de Meo as CEO and separation of the Chairman and CEO roles. Shareholders approved all resolutions, including new remuneration policies and bylaw changes, while management outlined immediate cost-cutting and strategic transformation plans.
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Revenue fell 16% year-on-year to €7.6 billion, with EBIT margin at 12.8% and strong cost reductions. Gucci and Saint Laurent saw double-digit declines, while Bottega Veneta grew. Store closures and asset sales continue, with further network rationalization and cautious H2 outlook.
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Luca de Meo will become CEO on September 15, with a shareholder meeting set for September 9 to approve governance changes and his appointment. He brings an external perspective and full autonomy, while ongoing brand strategies and financial priorities will continue without disruption.
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Revenue fell 14% year-over-year in Q1 2025 amid weak consumer confidence and low traffic, with double-digit declines expected to continue in Q2. Cost controls, store optimization, and deleveraging remain priorities, while new product launches and creative leadership changes aim to drive future growth.
Fiscal Year 2024
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2024 saw a 12% revenue decline and 46% drop in operating income amid transformation and market headwinds. Stabilization is expected in 2025, with continued cost control, store rationalization, and a focus on brand elevation and profitability.
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Q3 revenue fell 15% reported, with Asia Pacific and Gucci underperforming, while Bottega Veneta and Kering Eyewear showed resilience. Full-year recurring operating income is forecast at €2.5 billion amid ongoing macro headwinds and cost optimization.
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Revenue fell 11% year-over-year in H1 2024, with operating income down 42% amid weak demand in Asia-Pacific and Western markets. Guidance points to a 30% EBIT decline in H2, with gradual improvement expected as new product launches, especially at Gucci, roll out.