Kering sales returned to growth in Q2.
On Tuesday, the luxury group reported 2% revenue growth to €3.65 billion, on a comparable basis, for the second quarter of 2026. Kering’s fashion and leather goods sales came in flat at €2.95 billion, following a 3% decrease in Q1. As for its biggest house, Gucci, sales were down 2% to €1.41 billion, above consensus expectations of a 4.7% drop, marking a significant improvement for the Italian house, which was down 8% last quarter.
“ The return to growth in the second quarter was an important milestone. But we are still at the beginning of the journey and we remain realistic about the challenges ahead,” Kering CEO Luca de Meo told analysts on the earnings call. “So our priority now is to execute the ReconKering roadmap, to continue improving profitability and further strengthen the foundations of Kering for the long term. On that basis, I’d like to take the opportunity to confirm the guidance we shared earlier this year: growth and improved profitability in 2026 versus 2025.”
For the first half of the year, recurring operating margin landed at 12.8%, a 40 basis point improvement compared with H1 2025. “We expect the second half margin to be higher than the first half,” Kering CFO Armelle Poulou noted.
Retail sales in North America were up 10% in the second quarter, Japan was up 9%, Western Europe was down 1%, Asia-Pacific was also down 1%, and the rest of the world, including the Middle East, was down 8%. The group said that the conflict in the Middle East weighed on its sales growth in Q2 by approximately 1 percentage point; the region accounts for around 5% of the group’s retail sales.
As part of its turnaround strategy, Kering has closed 84 stores in the first half of 2026, following 75 net closures in 2025. “The fact that we returned to growth while materially reshaping our network demonstrates the improving productivity of our retail operations,” de Meo noted.
Bottega Veneta, Saint Laurent, and Brioni continued to improve sequentially, with performance accelerating compared to Q1, while Balenciaga faced a more challenging quarter amid a creative transition, according to the group. (Kering changed its segment reporting as of Q1, and no longer breaks down revenues of individual houses, except Gucci.)
Swiss luxury group Richemont kicked off the earnings season on July 15, announcing group sales up 20% to €6.3 billion in its Q1, while on Monday, LVMH reported group sales up 3%, with its fashion division up 1% and watches and jewelry up 11%.
Kering’s jewelry business, which consists of Boucheron, Pomellato, Dodo and Qeelin, confirmed the category’s momentum, with sales up 18% to €252 million. Kering Eyewear was up 8% to €476 million.
Questioned on the investment size of Gucci’s partnership with the Renault-owned F1 team, announced in May, de Meo revealed the creation of Gucci Racing, a division within Gucci dedicated to developing merchandise for the Gucci Racing Alpine Formula One team. “This is a smart way for us to engage with the sportswear category, and I believe that there is a real opportunity to make business out of it,” de Meo said. “And I’m convinced that with that business, we’ll probably even more than compensate for the cost of the sponsorship. That’s the target. Gucci Racing will start with Formula One, but it’s also an umbrella brand for any sport activity, whether it’s tennis or other initiatives.”
Looking ahead, Poulou flagged that the comparison basis is “much more demanding” in the third quarter (as a reminder, last year, Kering sales fell 15% in Q2 and 5% in Q3). However, it is hoped that newness at Gucci will help drive momentum. “Primavera [Demna’s debut show collection, presented in February] is rolling out in-store as of the second half of July, and we will have a strong marketing campaign at the end of August,” she told analysts. “In Q4, we will have much more product newness, because we will have the two collections, Primavera and the GucciCore cruise collection [that was presented in Times Square].”
De Meo anticipates sales growth for the group to be “flattish” in Q3. “What we can commit [for the full year] is growth,” the CEO said. “This is visible for the group. I don’t think it’s going to be linear.”
Bernstein analyst Luca Solca wrote in a note: “The first half results look like a step in the right direction.”
