Kering surges as Gucci sales decline slows, revenue beats estimates

Investing.com -- Kering reported second-quarter revenue that exceeded analyst expectations, driven by a slowdown in Gucci's sales decline and sequential improvement across its brand portfolio, sending its ADRs up 16.4%.

The French luxury group posted second-quarter revenue of €3.65 billion, up 2% on a comparable basis and slightly above the analyst consensus of €3.63 billion.

Gucci, the company's largest brand, saw its comparable sales decline narrow to 2%, a significant improvement of 7 percentage points from the first quarter, marking the brand's strongest sequential acceleration in several quarters. First-half revenue reached €7.22 billion, up 1% on a comparable basis compared to €7.44 billion in the same period last year.

"Kering delivered improved performance in the second quarter, with revenue returning to growth," said Luca de Meo, CEO of Kering. "Across the Group, we are seeing early signs of progress in brand desirability, commercial momentum and operating performance."

The company's recurring operating margin improved to 12.8% in the first half, up 40 basis points YoY, reaching €921 million. Net income attributable to the group fell to €189 million from €474 million in the prior-year period. Kering's directly operated retail sales increased 2% on a comparable basis in the second quarter, improving 4 percentage points sequentially from the first quarter.

Kering Jewelry delivered strong performance with second-quarter revenue up 18% on a comparable basis to €252 million, while Kering Eyewear grew 8% to €476 million. The company reduced net debt by €4.7 billion to €3.3 billion since December 31, 2025, aided by €4.0 billion from the Kering Beauté sale to L'Oréal.

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