Kering on the Road to Recovery – Jewelry Business Grows, Gucci Remains a Cause for Concern

Revenue for the luxury goods group Kering totaled 3.652 billion euros in the second quarter of 2026. This represents an increase of 1 percent on a reported basis and 2 percent after adjusting for currency and consolidation effects.

However, Kering’s return to growth is put into perspective by the weak performance of the previous year and the continued decline at Gucci.

In the first half of 2026, Kering reported revenue of 7.220 billion euros, down 3 percent from the previous year. On a comparable basis, however, revenue rose by 1 percent.

Sales in company-operated retail stores remained stable in the first six months of the current year. This development is noteworthy given the ongoing optimization of the store network. Following 75 net store closures in 2025, another 84 stores were closed in the first half of 2026. A total of 100 net store closures are planned for the full year.

Significantly improved profitability 

Profitability improved despite an operating result that remained virtually unchanged. Recurring operating income for the first half of the year was 921 million euros, which was nearly on par with the prior-year level (920 million euros).

The operating margin thus rose by 40 basis points to 12.8 percent. In the Fashion and Leather Goods division, it increased to 14.3 percent; at Gucci, to 17 percent; in the Jewelry division, to 6.2 percent; and at Kering Eyewear, to 23 percent. Adjusted net income totaled 355 million euros, while reported net income was 189 million euros.

Kering Jewelry

Kering Jewelry posted strong results in the second quarter of 2026, with revenue of 252 million euros. Revenue rose 15 percent on a reported basis and 18 percent on a comparable basis.

In the first half of the year, Kering Jewelry generated revenue of 521 million euros, representing an increase of 14 percent on a reported basis and 20 percent on a comparable basis.

Boucheron and Pomellato, in particular, performed well. According to the company, Boucheron set new records, while Pomellato benefited in particular from strong demand in Japan and North America.

Gucci

Gucci, the group’s flagship brand, generated revenue of 1.41 billion euros in the second quarter of 2026, representing a 3 percent decline on a reported basis and a 2 percent decline on a comparable basis.

However, the trend improved significantly compared with the first quarter. The decline narrowed from minus 8 percent on a comparable basis in the first quarter to minus 2 percent in the second quarter.

According to the company, the new collections and the strong performance in North America contributed in particular to this improvement.

Total revenue for the first half of 2026 amounted to 2.757 billion euros, representing a decline of 9 percent on a reported basis and 5 percent on a comparable basis compared with the first six months of 2025.

Luca de Meo, CEO of Kering, remains optimistic, however:

“Kering posted improved business performance in the second quarter: Revenue returned to a growth trajectory. Across the Group, we are seeing the first signs of progress in terms of our brands’ appeal, commercial momentum, and operational performance.” kering.com