- Kering
- 15 April 2026 09:48:19
Source: Sharecast
The French luxury group posted revenue of about €3.56bn in the three months to March, down roughly 6% on a reported basis, though broadly stable on a comparable basis.
Performance remained mixed across regions and brands, with directly operated retail sales falling while wholesale revenue rose, supported by strength in eyewear.
Gucci, which remains central to Kering’s profitability, saw revenue fall 14% on a reported basis to around €1.35bn, or 8% on a comparable basis, missing market expectations.
The decline came despite growth in North America, where sales rose by around 7% to 8%, as ongoing weakness in Western Europe and China continued to weigh on performance.
Analysts said the brand still faced challenges including over-distribution and waning cultural relevance in key markets.
Chief executive Luca de Meo said efforts to revive the label are underway but would take time.
“A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer,” he said, while reiterating that Gucci remained the group’s top priority.
Chief financial officer Armelle Poulou added that “the recovery will be gradual,” pointing to early improvements in conversion rates and initial traction in North America as evidence that the strategy is beginning to take hold.
Kering had been reshaping Gucci’s leadership and creative direction, including the appointment of Demna Gvasalia as artistic director, alongside efforts to accelerate the rollout of new collections and refine its product offering.
At group level, fashion and leather goods revenue declined, though other divisions provided some support.
Jewellery delivered strong growth, with revenue rising more than 20% on a comparable basis, while eyewear posted record quarterly sales amid sustained demand.
Regional trends were uneven, with North America the only market to show retail growth, while Japan, Asia-Pacific and Western Europe all declined.
The Middle East conflict also weighed on performance, with retail revenue in the region falling 11% and shaving around one percentage point off overall group sales, according to the company.
Kering had also moved to strengthen its balance sheet and streamline operations, including the €4bn sale of its beauty division to L’Oréal and the disposal of stakes in key real estate assets.
At 1027 CEST (0927 BST), shares in Kering were down 10.19% in Paris at €251.45.
Reporting by Josh White for Sharecast.com.