Luxury goods group Kering recorded €7.22 billion in first-half revenues, down by a -3% year-on-year (+1% like-for-like).
Performance improved in the second quarter compared to the first, as revenue increased by +1% (+2% on a comparable basis) to €3.65 billion. This was supported by a marked acceleration in Gucci sales.
Recurring operating income increased to €921 million, with the recurring operating margin improving by 40 basis points year-on-year to 12.8%. Net income attributable to the group from continuing operations (excluding non-recurring items) was €355 million, down around -13% year-on-year.
Kering 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.
“These first-half results demonstrate the positive impact of the decisive measures we have taken to reinforce the distinctiveness of our brands, simplify our organisation and increase effectiveness across the Group.
“We are also advancing the roll-out of our Group platforms, leveraging technology to enhance efficiency, strengthen client engagement and support stronger execution across our Houses,” he added.
“While the market environment remains demanding, we are focused on delivering our roadmap with discipline and consistency, creating the foundations for sustainable growth and long-term value creation.”
Fashion & Leathergoods show improving trends
Revenue from the Fashion & Leathergoods division totalled €5.8 billion in the first half, down -5% reported and -1% on a comparable basis, although the business continued to improve sequentially through the second quarter. The division recorded revenues of €2.9 billion in the second quarter, down -1% as reported and flat on a comparable basis.
Fashion & Leathergoods generated recurring operating income of €828 million, with its operating margin improving to 14.3%, reflecting continued cost discipline.
Saint Laurent, Bottega Veneta and Brioni continued to improve sequentially, with performance accelerating compared to the first quarter. Balenciaga continued to navigate its creative transition, while McQueen accelerated its repositioning strategy under newly appointed Chief Executive Officer Gianfranco D’Attis.
Gucci also recorded a notable sequential improvement despite remaining in decline overall. First-half revenue reached €2.76 billion, down -5% on a comparable basis, while second-quarter revenues reached €1.4 billion, a -2% decline on a comparable basis. Kering said recently announced partnerships with Alpine and L’Oréal regarding Gucci Beauty will have a positive impact on brand equity.
Eyewear delivers another strong performance
Kering Eyewear continued its sustained growth trajectory, reporting first-half revenue of €965 million, +8% up on a comparable basis and a +5% increase as reported. According to the company, this was the “best first-half in Kering Eyewear’s history”.
Second-quarter revenue reached €476 million, rising +8% on a comparable basis, with all major regions contributing to growth.
The division attributed the performance to several key product initiatives, including the Lindberg 40-Year Anniversary Capsule Collection, the relaunch of Maui Jim’s optical category and the successful debut of Valentino Eyewear, supported by major launch events in Italy and the USA.
Recurring operating income reached €222 million in the first half, with the operating margin improving to 23.0%, up 2.9 percentage points year-on-year.
Jewellery continues double-digit growth
Kering Jewellery remained one of the Group’s strongest performers, with first-half revenue increasing +14% as reported and +20% on a comparable basis to €521 million.
Growth was driven by continued strength across Boucheron and Pomellato, while Qeelin maintained positive momentum in Asia Pacific. The division’s recurring operating margin improved significantly to 6.2%.
Outlook
Kering said it remained focused on executing its ReconKering transformation plan while navigating an uncertain geopolitical and macroeconomic environment.
The Group added that the Middle East, which typically represents around 5% of retail revenue, continued to be affected by regional instability during the second quarter, reducing overall Group revenue growth.
Looking ahead, Kering said its priorities for the remainder of 2026 remain unchanged, with a continued focus on returning to sustainable growth while further improving profitability. ✈
