Companies

Kering signals slow recovery despite Gucci’s weakness

Apr 16, 2026 France

The France-based luxury group has reported early signs of recovery. However, growth across several of its Houses has been partly offset by continued weakness at its flagship label, Gucci

“In the first quarter of 2026, Group revenue stabilized, marking an important first step in our recovery and a further sequential improvement. This performance reflects the first tangible effects of our actions, despite a challenging geopolitical environment”, commented Luca de Meo, CEO of Kering.

Kering reported revenue of 3.57 billion euros in the first quarter of the current year. This represents a 6% decrease on a reported basis, but is stable on a comparable basis, as compared to the same period last year.

While sales from the directly operated retail network (including e-commerce) declined by 2% year-on-year on a comparable basis during this period, with uneven results across regions and brands, wholesale revenue increased by 6%, with continued momentum in eyewear.

Fashion & Leather Goods Segment

Revenue from the Fashion & Leather Goods segment amounted to 2.85 billion euros, reflecting a further sequential improvement, with a year-on-year decrease of 9% on a reported basis and 3% on a comparable basis.

Although sales from the directly operated retail network fell by 4% in the first quarter, most brands performed well. Saint Laurent, Bottega Veneta, Balenciaga and Brioni all experienced year-on-year growth, driven by strong product demand and performance in North America. In contrast, Alexander McQueen’s ongoing brand reset impacted results. Meanwhile, wholesale revenue rose slightly by 2%.

Against this backdrop, Gucci remains Kering's primary concern. In the first quarter of the year, revenue totalled 1.35 billion euros, reflecting a 14% decrease on a reported basis and an 8% decrease on a comparable basis, as compared to the same period in 2024.

“A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer. We have reset the product architecture and strengthened category focus, with new collections rolling out progressively in stores throughout the year”, said Luca de Meo.

Sales from Gucci’s directly operated retail networks declined by 9% on a comparable basis, although North America delivered a solid performance, with sales up by 8% year-on-year. While this provided initial confirmation that the strategic reset is gaining traction, it was not enough to offset the decline in Asia Pacific and Western Europe. Meanwhile, wholesale revenue increased by 2% year-on-year.

Other Segments

In contrast, the Kering Jewellery and Kering Eyewear segments performed well in the first quarter. The former recorded revenue growth of 14% and 22% respectively on a reported and comparable basis, reaching 269 million euros, while the latter recorded growth of 3% and 7% respectively, reaching 489 million euros.

Middle East Conflict

Despite earlier growth, the Middle East conflict led to an 11% drop in retail revenue in the region in the first quarter. Operations are now fully restored, while the Group continues to monitor potential broader impacts on tourism and the global economy.

Image Credits: wwd.com

France Companies Kering Luxury Quarter Results Results