Updated
Updated · WWD · Jul 28
Kering Returns to Q2 Growth With 2% Sales Gain as Gucci’s Decline Narrows
Updated
Updated · WWD · Jul 28

Kering Returns to Q2 Growth With 2% Sales Gain as Gucci’s Decline Narrows

3 articles · Updated · WWD · Jul 28

Summary

  • Kering posted its first comparable sales increase in three years, with Q2 organic revenue up 2% to 3.65 billion euros, ahead of the 1.4% consensus.
  • Gucci remained in decline but improved sharply: organic sales fell 2% after an 8% drop in Q1, beating expectations for a 4.7% fall as leather goods recovered and Demna’s early designs gained traction in the U.S.
  • 921 million euros in first-half recurring operating profit topped the 865 million euro consensus, while margin rose to 12.8% from 12.4% a year earlier and 12% expected.
  • 84 store closures in the first half put Kering more than halfway to its 100 net closures target for 2026, while net debt fell to 3.3 billion euros from 8 billion at year-end after asset sales.
  • Luca de Meo kept 2026 guidance for renewed growth and better profitability but warned Q3 could be flat, with China still challenging even as jewelry sales jumped 18% and management pushes a dedicated recovery plan there.

Insights

Will Kering's aggressive ReconKering strategy and asset sell-offs be enough to sustain Gucci's fragile comeback in a turbulent luxury market?
As luxury pivots to alpha-city exclusivity, can Kering's digital gamble in China offset the massive risks of 84 recent store closures?