Kering, the parent company of Gucci, experienced an 11% surge in its stock shortly after reporting second-quarter results that indicated a return to overall revenue growth and a smaller-than-anticipated decline in sales for its flagship brand, Gucci. The luxury group posted total revenue of €3.65 billion ($4.15 billion) for the quarter, a 1% increase year-over-year in reported terms and 2% at constant currency, surpassing analyst expectations of €3.63 billion. This marks a positive shift for Kering as it continues its revival plan amid a challenging geopolitical and economic environment.
Gucci's sales during the second quarter were €1.41 billion ($1.6 billion), a 3% decrease in reported terms and 2% at comparable rates. While still a decline, this was an improvement from the previous quarter's 8% drop and analysts' consensus forecast of a 4% decline (€1.37 billion). The strong demand from the U.S., particularly for new handbag lines, helped offset weaker spending in other regions. This performance led analysts to suggest that Kering is on track to meet its goal of returning Gucci to full-year growth.
Despite the positive signs, Kering's CEO, Luca de Meo, emphasized that the company is still in the early stages of its turnaround. He stated that the return to growth for Gucci would likely not be linear and that the third quarter might be "flattish." Overall, Kering's net debt decreased significantly to €3.3 billion, down €4.7 billion from December 31, 2025. The operating margin for the group also improved to 12.8% for the first half of 2026, up 40 basis points from the previous year.
