Following today’s release of Kering’s figures for the three months ending 31 March 2026; Chloe Tedford-Jones, apparel analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “Kering’s Q1 results highlight early progress but limited tangible recovery, as group revenue declined 6.4% to €3.6bn, but was flat on a comparable basis, signalling sequential improvement. This stabilisation was supported by strength in jewellery and eyewear, offsetting weakness in fashion and leather goods segment, particularly as Kering’s main brand Gucci continued to underperform significantly. This comes amid a turnaround led by CEO Luca de Meo, focused on revitalising Gucci’s product and distribution. The group has also streamlined operations, reducing debt through disposals such as the €4bn sale of its beauty division to L’Oréal. However, despite these efforts, Kering continues to lag key peers such as LVMH, underscoring that a full recovery will take time.
“Regional performance remained uneven, with North America up 9% on a comparable basis, supporting group revenue as Asia Pacific and Western Europe contracted 4% and 7%, respectively, amid subdued luxury demand, sustained inflation and cautious consumer spending. Japan saw comparative sales fall 3%, in part due to declining tourism spend as the yen strengthened. The Middle East was the group’s worst performing region, falling 11% in comparable sales, directly impacted by the escalation of conflict in the region from late February. This not only reduced local demand but also disrupted global tourism flows, contributing an estimated 1ppt drag on overall group sales. More broadly, ongoing geopolitical tensions and economic uncertainty continue to weigh on luxury consumption globally.
“At brand level, Gucci remains crucial, as revenue fell 14.3% on a reported basis, and 8% comparably. The brand’s underperformance highlights that its long-awaited revival is still slow to take shape. While significant leadership and creative changes have been implemented, including the appointment of Demna Gvasalia as Artistic Director and subsequent release of two collections, the brand has yet to meaningfully regain momentum, despite early efforts to inject newness and improve product availability. Yves Saint Laurent and Bottega Veneta delivered more resilient performances, bolstered by the brands’ closer alignment with timeless luxury trends, whilst the other houses division, including Balenciaga and Brioni, returned to growth. Kering’s Jewellery division was the group’s shining star, rising strongly, alongside continued momentum in eyewear. Nevertheless, given Gucci’s outsized contribution to group profitability, Kering’s overall trajectory remains heavily dependent on the success of its turnaround, with investors likely seeking clearer signs of improving brand momentum in the coming quarters.”
