Directly operated retail, including e-commerce, dropped 11 per cent on a comparable basis, while wholesale revenue decreased 9 per cent as the Group tightened distribution to enhance exclusivity.

Kering’s FY25 revenue fell to €14.7 billion (~$17.493 billion), with operating income and margins declining amid weaker luxury demand and tighter distribution.
Gucci remained under pressure, while Yves Saint Laurent stayed resilient and Bottega Veneta posted growth.
Other Houses faced restructuring losses.
Kering targets a return to growth and margin improvement in 2026.

Recurring operating income stood at €1.6 billion, down 33 per cent year on year (YoY), with recurring operating margin narrowing to 11.1 per cent from 14.5 per cent in 2024, reflecting lower revenue. Recurring net income attributable to the Group reached €532 million, while net income from continuing operations turned slightly negative at €-29 million after restructuring and optimisation charges.

Free cash flow from operations amounted to €4.4 billion, or €2.3 billion excluding major real estate transactions, marking a 35 per cent decline.

Gucci remained the largest contributor but continued to face pressure, with revenue of €6 billion, down 22 per cent as reported and 19 per cent on a comparable basis. Retail sales fell 18 per cent and wholesale dropped 34 per cent, the group said in a financial release.

However, fourth-quarter trends improved sequentially as new collections, including La Famiglia, helped revive consumer interest. Gucci posted recurring operating income of €966 million with a 16.1 per cent margin.

Yves Saint Laurent delivered relatively resilient performance, with revenue of €2.6 billion, down 8 per cent as reported and 6 per cent on a comparable basis.

Fourth-quarter sales stabilised, supported by growth in North America and a return to positive momentum in Western Europe. The House maintained a 20 per cent operating margin and generated €529 million in recurring operating income.

Bottega Veneta showed strength, with revenue of €1.7 billion, stable as reported and up 3 per cent on a comparable basis. Fourth-quarter sales reached a record level, driven by North America and the Middle East, alongside improving trends in Asia Pacific. Recurring operating income reached €267 million, with margin expanding to 15.6 per cent.

The Other Houses segment reported revenue of €2.9 billion, down 10 per cent as reported and 6 per cent on a comparable basis. Retail performance improved in the fourth quarter, with Balenciaga returning to positive retail growth. However, the division posted a recurring operating loss of €112 million, weighed down by restructuring at Alexander McQueen.

Kering enters 2026 aiming to return to growth and improve margins despite a still uncertain macroeconomic backdrop. The Group plans to prioritise disciplined execution, sharpen brand positioning across Houses and provide required operational support as it seeks to reignite demand and restore profitability.

Fibre2Fashion News Desk (HU)

GDP growth picked up in the third quarter (Q3) of 2025 after a weak 2024, as private demand gradually recovered.

Australia’s real GDP expanded by an estimated 1.9 per cent in 2025 and is projected to grow by 2.1 per cent in 2026 as the lagged impact of monetary easing and improving consumer sentiment support private demand and investment, the IMF said.
The recovery is expected to continue in the near term.
Labour market conditions are easing gradually after a tight period.
Wage growth is likely to moderate further.

Labour market conditions are easing gradually after a period of tightness, although the unemployment rate, at 4.3 per cent, remains low by historical standards, an IMF release said.

The economic recovery is expected to continue in the near term.

Elevated global uncertainty will continue to weigh on external demand and the current account is expected to remain in deficit into the medium term.

Inflation is projected to converge to the midpoint of the central bank’s 2-3-per cent target range by the latter half of 2027 as pressures on service prices ease and import costs remain stable.

Wage growth is anticipated to moderate further, partially attributable to weak productivity growth, the IMF said.

Risks to the country’s economic outlook are skewed toward slower growth and higher inflation. External threats such as global trade tensions, financial instability and volatile commodity prices can potentially dampen demand and employment, while new trade agreements and greater regional integration could support resilience.

Domestically, persistent inflationary pressures may arise from strong labour markets and constrained supply capacity, the IMF added.

Fibre2Fashion News Desk (DS)

In his congratulatory message to the 39th African Union (AU) Summit at Addis Ababa, he highlighted efforts to upgrade the ‘green channel’ for African exports.

President Xi Jinping has announced that China will fully implement zero-tariff treatment for 53 African countries with which it has diplomatic ties from May 1.
In his message to the 39th African Union Summit at Addis Ababa, he highlighted efforts to upgrade the ‘green channel’ for African exports.
UN chief Antonio Guterres praised the decision and called for other countries to take the same measure.

Praising the policy decision, UN Secretary General Antonio Guterres appealed at the Summit “to all developed countries and to all countries with a large economic potential to take exactly the same measure.”

“Africa needs free trade for its goods, and Africa cannot be penalised, being a continent with enormous economic difficulties, by trade policies that are restrictive and by tariffs that do not allow African products to be competitive,” the UN chief was quoted as saying by a Chinese state-controlled media outlet.

Noting the ‘multiplication of tariffs’ in recent times, Guterres reiterated his strong support for free trade and his advocacy for “reducing the tariff levels at the global level in order to be able to provide for global prosperity”.

Fibre2Fashion News Desk (DS)