Kering’s stock soared on Wednesday. 

Family-led luxury group Kering – the owner of major brands in travel retail including Gucci, Saint Laurent, Bottega Veneta, and Balenciaga – has revealed first-half revenue up +1% to €7.22bn on a comparable basis, with an improvement in Q2 of +2% to reach €3.65bn.

However, at the reporting level, H1 revenue was down by -3% from €7.44bn in the same period in 2025 (see Operating Performance table).

The biggest division, fashion and leather goods – which generates about 80% of Kering’s revenue – was down -1% (comparable) and -5% (reported) in the first six months of 2026. Gucci, which makes up half of the division’s revenue, contracted again by -5% (comparable) and -9% (reported).

Trendwise, both the fashion division and its core component Gucci saw respective Q2 contractions of -1% and -3% (comparable) that were smaller than in H1 overall. With the company stating that key execution levers “are on track or ahead of plan”, this appeared to be enough to lift the stock by +16.9% on Wednesday, the strongest daily gain this year.

More relevant to investors perhaps is that the improving Q2 fashion numbers come after the ReconKering turnaround plan announced in mid-April. It sets out a strategy for rebuilding execution discipline, drastically cutting inventories, and optimising the retail footprint. A core element is the establishment of a group platform, enabling Kering’s houses to operate with more speed and efficiency while preserving their full creative identity.

Growth was led by the jewellery and eyewear divisions. (Click the image to enlarge.)

Gucci is the key

All eyes will be on Gucci in the second half. Chloe Tedford-Jones, Apparel Analyst at intelligence platform GlobalData, says: “Gucci’s recovery remains tentative. While still in decline, Q2 represents the strongest sequential improvement in recent quarters.

“New collections and launches under Demna’s creative leadership, such as Borsetto and Paparazzo handbags, helped reignite visibility and retail engagement, and the Gucci Core show in New York reinforced the momentum. The planned ‘Gucci Racing’ collaboration in 2027 is expected to bolster credibility, and 19 net store closures have been implemented as part of the brand’s turnaround.”

Eyewear closes in on €1bn in H1

Elsewhere at Kering, there was good progress from the smaller units of jewellery and eyewear. At the reported level, Kering Eyewear, which has been making some key inroads in duty-free in recent years, posted revenue of €965m in H1, up +5%, while Kering Jewelry – including brands like Boucheron, Pomellato, DoDo and Qeelin – soared by +14% to reach €521m. There was a slight acceleration for both divisions in Q2 at the reporting level, compared with H1 overall.

In a statement, Kering’s CEO, Luca de Meo, said: “Kering delivered improved performance in the second quarter, with revenue returning to growth. Across the group, we are seeing early signs of progress in brand desirability, commercial momentum and operating performance. The quarter also showed sequential acceleration, including at Gucci, driven by the actions taken over recent months.”

Tentative signs that a turnaround is in sight for the group. (Click the image to enlarge.)

Operating income flat

While there were some Q2 improvements in Kering’s revenue development, operating income fell by -1% to €828m across the fashion division, mainly due to the drag from Gucci, down -4%. Strong offsetting from jewellery and eyewear to the tune of +106% and +19% respectively was just enough to deliver flat recurring operating income of €921m.

De Meo added: “These first-half results demonstrate the positive impact of the decisive measures we have taken to reinforce the distinctiveness of our brands. We are also advancing the rollout of our group platforms, leveraging technology to enhance efficiency and support stronger execution across our houses. While the market environment remains demanding, we are focused on delivering our roadmap with discipline and consistency.”

In a still uncertain geopolitical and macroeconomic environment, Kering says it will “place a strong emphasis on flawless execution and agility” and equip each house with the operational support to accelerate progress. The company’s 2026 objectives remain to return to growth and improve margins.

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