Following today’s release of Kering’s figures for the H1 ending 30 June 2026; Chloe Tedford-Jones, apparel analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “Mixed outcomes defined Kering’s H1 2026 performance as group revenue fell 2.9% to €7.2bn, though sales rose 1% on a comparable basis. In Q2 the group saw its first comparable sales growth in a year rising 2%. Despite the top-line pressures, recurring operating income reached €921m in H1, with the margin improving to 12.8%, a 40bps gain over the same period in 2025. These results coincide with CEO Luca De Meo’s April announcement of the group’s turnaround plan ReconKering. The plan commits to restoring financial discipline, cutting inventories by €1bn, optimizing the retail footprint, and boosting client engagement. Investors responded positively with the share price jumping c.16% in early morning trade, though risks remain as geopolitical tensions, economic hardship and a luxury market still in early recovery set a cautious tone.
“Gucci’s recovery remains tentative. H1 revenue fell 8.9% to €2.7bnand 5% on a comparable basis, while in Q2 it declined 3.2% on a reported basis and 2% on a comparable basis. While still in decline, this, represents the strongest sequential improvement in recent quarters. New collections and launches under Demna’s creative leadership such as Borsetto and Paparazzo handbags helped reignite visibility and retail engagement and the Gucci Core show in New York reinforced the momentum. Efforts to restore brand strength are underway, with the planned ‘Gucci Racing’ collaboration in 2027 expected to bolster credibility, and 19 net store closures implemented as part of the brand’s turnaround.
“Kering’s segment performance showcased both resilience in growing divisions and lingering pressure in its legacy Fashion & Leather Goods arm. Fashion & Leather Goods declined 5.2% in H1 to €5.8bn, mainly due to Gucci’s performance, though other brands including Saint Laurent, Bottega Veneta and Brioni showed improvement in Q2. Jewelry delivered €521min revenue up 14.5% driven by Boucheron, Pomellato and strong demand in Asia and North America. Eyewear grew 4.8% to €965m, up 8% on a comparable basis thanks to product launches such as Lindberg Maui Jim and Valentino optics. Corporate & Other revenues fell about 8.5% and the segment recorded a recurring operating loss of €152m driven by real estate divestments despite growth at Ginori 1735.
“Kering’s regional performance in H1 2026 reflected a split picture, with North America and parts of Asia-Pacific proving resilient amid widespread softness. North America led the way recording a 9% rise on a comparable basis. Western Europe saw comparable sales of €2.1bn, fall 2%, hurt by weak tourism from Asia and Japan, only partly offset by improved local demand. Asia-Pacific excluding Japan’s comparable sales stayed flat despite strong sales in South Korea which were offset by weakness in Mainland China. Japan’s comparable sales rose 2% supported by tourists from the US and Europe taking advantage of the weakness of the yen. The Rest of the World dropped 8%largely due to steep falls in tourist numbers, especially in the Middle East amid various conflicts.”
