Kering (EU:KER) reported second-quarter revenue that came in ahead of market expectations, helped by a marked improvement in Gucci’s performance and stronger momentum across several of its brands. The results prompted investors to push the luxury group’s shares more than 10% higher in early trading in Paris.
The company generated second-quarter revenue of €3.65 billion, representing comparable growth of 2% and narrowly exceeding the analyst consensus forecast of €3.63 billion. For the first half of 2026, revenue totalled €7.22 billion, broadly stable on a comparable basis, compared with €7.44 billion in the same period a year earlier.
Gucci, Kering’s largest brand, continued to show signs of recovery as its comparable sales decline slowed to 2% during the second quarter. That represented an improvement of seven percentage points from the first quarter and marked the label’s strongest sequential performance in several quarters.
“Kering delivered improved performance in the second quarter, with revenue returning to growth,” said Luca de Meo, CEO of Kering. “Across the Group, we are seeing early signs of progress in brand desirability, commercial momentum and operating performance.”
The group’s recurring operating profit margin improved to 12.8% during the first half, an increase of 40 basis points from a year earlier, while recurring operating income reached €921 million. Net income attributable to shareholders declined to €189 million from €474 million in the prior-year period. Sales through directly operated stores also improved, rising 2% on a comparable basis in the second quarter, a four-percentage-point improvement compared with the first quarter.
Management also reiterated that it expects the group’s EBIT margin in the second half of 2026 to exceed the level achieved during the first six months of the year. The positive outlook was reflected in upward revisions to 2026 earnings per share estimates, helping fuel the strong share price reaction.
Other businesses within the portfolio also performed well. Kering Eyewear increased second-quarter revenue by 8% to €476 million, while Kering Jewelry recorded comparable revenue growth of 18% to €252 million. The group also strengthened its balance sheet by reducing net debt by €4.7 billion since 31 December 2025 to €3.3 billion, supported by the €4.0 billion sale of Kering Beauté to L’Oréal.
During the earnings call, management said expectations for the third quarter are to be “flattish” at the group level.
Commenting on the results, Bernstein analysts said: “Kering’s turnaround seems to be moving in the right direction; current valuations, however, suggest that this is largely priced in. More yo-yo moves could be on the menu.”
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