France’s Kering posts H1 growth, Gucci shows retail momentum
For the six months ended June 30, 2026, Kering reported revenue of €7,220 million (~$8.82 billion), representing a 1 per cent increase on a comparable basis but a 3 per cent decrease as reported due to negative currency effects.
Kering SA has reported first-half (H1) 2026 revenue of €7,220 million (~$8.82 billion), up 1 per cent on a comparable basis despite a 3 per cent decline as reported.
Recurring operating income reached €921 million (~$1.13 billion) with margin improving to 12.8 per cent, while net income attributable to the group fell sharply to €189 million (~$214.84 million)
The group saw early signs of progress in brand desirability and commercial execution, supported by decisive measures to simplify its organisation and enhance effectiveness across its houses, even as the market environment remained challenging.
“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,” said Luca de Meo, CEO of Kering.
Q2 revenue returns to growth, margins improve
Second-quarter (Q2) revenue reached €3,652 million (~$4.46 billion), up 2 per cent on a comparable basis. Recurring operating income for H1 stood at €921 million (~$1.13 billion), with the recurring operating margin improving to 12.8 per cent from 12.4 per cent a year earlier.
The net income attributable to the group fell sharply to €189 million (~$231 million), down 60 per cent year on year (YoY), reflecting non-recurring operating expenses and restructuring costs. Earnings per share (EPS) for H1 2026 were €1.54 (~$1.88).
“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,” added de Meo.
Gucci shows sequential retail improvement despite lower sales
Within Kering’s Fashion & Leather Goods division, H1 revenue was €5,800 million (~$7.09 billion), down 5 per cent as reported and 1 per cent on a comparable basis. Gucci’s H1 revenue declined 9 per cent as reported and 5 per cent on a comparable basis to €2,757 million (~$3.37 billion), but the brand posted its strongest sequential acceleration in retail in several quarters, with Q2 directly operated store sales improving by 7 percentage points over Q1, Kering said in a press release.
Saint Laurent and Bottega Veneta delivered solid growth in North America and Western Europe, while Balenciaga and McQueen continued their creative repositioning.
Margin improvement and cash flow strength
The group’s recurring operating margin improved to 12.8 per cent in H1 2026, up 40 basis points from the prior year, while recurring EBITDA reached €1,935 million (~$2.36 billion), with a margin of 26.8 per cent.
Free cash flow from operations totalled €2.6 billion (~$3.17 billion), including proceeds from real estate transactions and the Gucci Beauty agreement. Excluding these items, free cash flow from operations was €1.8 billion (~$2.20 billion). Net debt was reduced to €3.3 billion (~$4.03 billion), down €4.7 billion from year-end 2025.
Outlook: Focus on execution and sustainable growth
The company remained focused on flawless execution and agility, equipping each house with sharper, more sustainable brand strategies and operational support to accelerate progress. The group’s objective for the remainder of 2026 is to return to growth and further improve profitability, despite ongoing geopolitical and macroeconomic uncertainties, added the release.
“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,” said de Meo.
Fibre2Fashion News Desk
