French luxury conglomerate Kering reported on Tuesday that its fourth-quarter sales fell less than market expectations. Investors are awaiting further details from CEO Luca de Meo on plans to revitalize the struggling Gucci brand.

The group's fourth-quarter revenue reached €3.9 billion (approximately $4.64 billion), representing a 3% decline on a comparable basis after adjusting for currency fluctuations. This performance surpassed the average analyst forecast of a 5% drop.

Comparable sales for the Gucci brand decreased by 10% in the fourth quarter, slightly better than the 12% decline anticipated by analysts. This marks the tenth consecutive quarter of declining sales for the brand.

Kering indicated that excluding one-time gains from real estate sales, the company’s operating cash flow decreased by 35% last year to €2.3 billion.

The group’s operating profit for 2025 stood at €1.63 billion, only about one-third of its 2022 level. The overall operating margin for the group fell to 11%. Gucci’s operating margin declined to 16%, compared to 28% and 36% respectively three years ago.

In contrast, rival LVMH achieved a 22% margin last year despite a broader slowdown in the luxury market, with its leather goods and fashion division—which includes Louis Vuitton and Dior—reaching a 35% profit margin.