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(Sharecast News) - Shares in Gucci-owner Kering soared on Tuesday, after quarterly sales at the luxury goods group came in ahead of expectations.
The Paris-listed firm, which also owns Yves Saint Laurent and Bottega Veneta, among other brands, posted a 3% dip in comparable fourth-quarter revenues, to 3.91bn. However, that was better than the 6% fall analysts had been expecting.
The revenue decline at Gucci, its biggest brand, was also not quite as large as feared, down 10% at 1.62bn. Consensus had been for a 12% drop.
As at 0915 GMT, the stock had jumped 10%. Rival luxury houses also sparked on the back of the update, with Hermes International 2% stronger, Switzerland's Richemont up 1% and Burberry Group 2% higher in London at 1,198p.
Over the year, Kering's comparable group revenues slid 10% at 14.7bn, while recurring operating income tumbled 33% to 1.6bn.
However, chief executive Luca de Meo said: "The performance in 2025 does not reflect the group's true potential.
"In the second half, we took decisive actions, strengthening the balance sheet, tightening costs and making strategic choices that lay the foundations for the next chapter."
Looking to the current year, Kering reiterated plans to return to growth and bolster margins in 2026.
"As we enter 2026, the entire team is fully committed to delivering a leaner, faster Kering, enhancing brand positioning and sales, rebuilding sales and strengthening cash generation to ensure sustainable, long-term value creation."
De Meo joined Kering from Renault in September with a mandate to turn the business around. He took over from Francois-Henri Pinault, who remains as chair. The Pinault family holds a controlling stake of around 42%.
Jefferies, which has a 'hold' rating on the stock, said: "Kering's closing stages of 2025 confirm gradually reducing pressures at a time of more supportive industry conditions.
"As this juncture, 2026 guidance on growth and margin recovery is qualitatively aligned to consensus estimates."