{"id":65550,"date":"2026-07-28T12:08:17","date_gmt":"2026-07-28T16:08:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/kering-returns-to-growth-in-q2-as-gucci-turnaround-gains-momentum\/65550\/"},"modified":"2026-07-28T12:08:17","modified_gmt":"2026-07-28T16:08:17","slug":"kering-returns-to-growth-in-q2-as-gucci-turnaround-gains-momentum","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/kering-returns-to-growth-in-q2-as-gucci-turnaround-gains-momentum\/65550\/","title":{"rendered":"Kering Returns to Growth in Q2 as Gucci Turnaround Gains Momentum"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Kering (<a href=\"\/stock\/KER\">KER<\/a>) reported Q2 revenue of \u20ac3.65 billion, a 2% increase on a comparable basis<\/strong>, signaling a return to growth for the luxury group.<\/li>\n<li><strong>Gucci sales fell just 2% to \u20ac1.41 billion<\/strong>, outperforming analyst estimates of a 4% decline and showing significant improvement from the previous quarter&#39;s 8% drop.<\/li>\n<li><strong>H1 recurring operating income reached \u20ac921 million<\/strong> with a margin of <strong>12.8%<\/strong>, reflecting the impact of the group&#39;s &quot;ReconKering&quot; strategic reset.<\/li>\n<li><strong>The ongoing Middle East crisis reduced Q2 group revenue growth by 1 percentage point<\/strong>, though retail trends in the region showed sequential monthly improvement.<\/li>\n<li><strong>Net debt was slashed by \u20ac4.7 billion<\/strong> since the end of 2025, falling to <strong>\u20ac3.3 billion<\/strong> as of June 30, 2026.<\/li>\n<\/ul>\n<p>Kering (<a href=\"\/stock\/KER\">KER<\/a>) successfully returned to growth in the second quarter of 2026, posting group revenue of <strong>\u20ac3.65 billion<\/strong>. This represented a <strong>2% increase on a comparable basis<\/strong>, slightly ahead of analyst expectations of 1.7% to 2% growth. The performance marks a critical turning point for the French luxury conglomerate as it executes its &quot;ReconKering&quot; strategic roadmap under CEO Luca de Meo.<\/p>\n<p>The group&#39;s flagship brand, Gucci, showed clear signs of stabilization with a <strong>2% comparable revenue decline<\/strong> to <strong>\u20ac1.41 billion<\/strong>. While this was the brand&#39;s 12th consecutive quarterly drop, it beat the consensus forecast of <strong>\u20ac1.37 billion<\/strong> (-4%). Demand for new handbag collections in the <strong>United States<\/strong> was a primary driver, where Gucci sales surged <strong>9%<\/strong> during the quarter.<\/p>\n<p>For the first half of 2026, Kering (<a href=\"\/stock\/KER\">KER<\/a>) reported total revenue of <strong>\u20ac7.22 billion<\/strong>, up <strong>1% on a comparable basis<\/strong>. The group&#39;s <strong>recurring operating income stood at \u20ac921 million<\/strong>, yielding an <strong>operating margin of 12.8%<\/strong>. This profitability level exceeded the <strong>\u20ac884.8 million<\/strong> expected by analysts, demonstrating improved operational rigor and cost discipline across the organization.<\/p>\n<p>Geopolitical headwinds continued to weigh on the results, specifically the ongoing crisis in the Middle East. Kering (<a href=\"\/stock\/KER\">KER<\/a>) noted that the conflict had a <strong>1 percentage point negative impact<\/strong> on group revenue growth in Q2. Despite this, the company observed that retail trends in the region improved sequentially month-over-month throughout the quarter.<\/p>\n<p>Kering&#39;s (<a href=\"\/stock\/KER\">KER<\/a>) smaller segments provided additional support to the top line, with <strong>Kering Eyewear<\/strong> seeing revenue increase by <strong>8%<\/strong>. The group also reported a strong <strong>free cash flow from operations of \u20ac2.6 billion<\/strong>, bolstered by real estate proceeds and a new agreement regarding Gucci Beauty. CEO Luca de Meo stated that these results demonstrate the &quot;positive impact of decisive measures&quot; taken to reinforce brand desirability and simplify the group&#39;s organization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Kering (KER) reported Q2 revenue of \u20ac3.65 billion, a 2% increase on a comparable basis, signaling a return [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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