Kering’s quarterly results gave investors something to cheer about. Shares rose by double digits on the Paris Stock Exchange after Gucci, helped by its bags and leather goods division, recorded a 2% comparable sales decline in the second quarter of 2026. That was better than analysts had expected, with consensus pointing to a 4.7% drop. During the period, Bottega Veneta performed well, while Kering reduced both margins and debt levels. Forecasts for the third quarter remain very cautious.
Kering returns to positive territory
In the second quarter of 2026, Kering’s revenue stood at €3.65 billion, up 1% at current exchange rates and up 2% on a comparable basis. It was the first quarter of growth in three years. In the same period (April–June), Gucci recorded revenue of €1.41 billion, down 3% at current exchange rates and down 2% on a comparable basis. The flagship brand exceeded expectations of a 4.7% decline, as cited by Vogue.
Performance was helped by the return to growth of bags and leather goods, thanks to the new Borsetto and Paparazzo bags. In the first quarter, the flagship brand’s revenues had declined by 8% (current exchange rates) and 19% (comparable) year on year. “Gucci has competitive prices for its new products,” Kering CEO Luca de Meo admitted during the conference call with analysts. “In some cases, we’ve also repositioned some products, because I have the feeling that in certain categories we pushed too far”.
Leather goods, once again
Kering Fashion & Leather Goods revenue in the second quarter was €2.95 billion, down 1% at current exchange rates and stable on a comparable basis. The result nevertheless improved compared with the first quarter. Saint Laurent continued to improve sequentially: de Meo is counting on a series of leather goods items to be launched for spring 2027. Bottega Veneta once again outperformed thanks to leather goods. Balenciaga faced a tougher quarter due to the creative transition and its commitment to restoring balance across the business, with leather goods remaining a strength.
Half-year figures
Kering closed the first half with revenue of €7.22 billion, down 3% at current exchange rates and up 1% on a comparable basis. Net income stood at €189 million, down about 60% compared with the first half of 2025. Gucci’s first-half revenue was €2.76 billion, down 9% at current exchange rates and down 5% on a comparable basis. One particularly important item is the reduction of the group’s net debt to €3.3 billion: compared with December 31, 2025, debt was reduced by €4.7 billion, thanks to the sale of the cosmetics division and real estate assets. de Meo expects group sales to remain “substantially flat” in the third quarter, but says 2026 will close with growth.
Analysts’ view
For Luca Solca of Bernstein, “the first-half results look like a step in the right direction”. HSBC is also optimistic: “We believe the group is focusing on the right priorities to regain momentum and re-engage with aspirational customers, particularly for the Gucci brand”. Citi explains that the shares are rising due to “the emergence of a credible recovery scenario, continued cost discipline, and the potential benefits from organizational and strategic changes, together with the easing of financial leverage”.
Photo from gucci.com
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