What were the key results and strategic developments behind Kering's first quarterly revenue growth since early 2024, including Gucci's narrower-than-expected sales decline, the jewelry division's performance, the impact of the Kering Beauté sale on debt, and the broader outlook

Kering achieved its first quarterly revenue growth since early 2024 in Q2 2026, with group revenue rising +2% on a comparable basis to €3.65 billion, and Gucci's sales decline narrowing sharply to just -2% — far better than analysts had expected. Below is a breakdown of the key results and strategic moves.

Key Q2 2026 Results

• Group revenue: €3,652 million in Q2 2026, up +2% on a comparable basis — the first quarterly growth since early 2024 . For the first half, revenue was €7,220 million, up 1% on a comparable basis .
• Gucci: Sales fell only -2% to €1.4 billion, beating consensus forecasts for a much larger drop. U.S. demand for new handbag designs offset weaker spending elsewhere .
• Fashion & leather goods: Sales came in flat at €2.95 billion, a clear improvement from a -3% decline in Q1 .
• Half-year net profit: Fell 60% to €189 million, largely due to exceptional items (including restructuring and one-off costs) rather than underlying deterioration .

Jewelry Division Performance

• Kering's jewelry houses — Boucheron, Pomellato, DoDo, and Qeelin — have been a persistent bright spot, delivering double-digit growth in Q3 2025 and Q4 2025 even while the wider group was still contracting .
• In Q4 2025, the jewelry and watch segment (then reported under "Other Houses") showed strong sequential improvement and double-digit growth at Boucheron with accelerating momentum at DoDo and solid growth at Qeelin .
• In March 2026, Kering restructured its reporting to create a dedicated Kering Jewelry segment, combining Boucheron, Pomellato, DoDo, and Qeelin under one umbrella, signaling jewelry as a core growth pillar for the future .
• In the first half of 2026, jewelry continued to outperform, though group-level segment revenue figures for Q2 2026 specifically remain embedded in the broader divisional reporting.

Kering Beauté Sale and Debt Impact

• In October 2025, Kering sold its beauty division (including the Creed fragrance brand) to L'Oréal for €4 billion ($4.66 billion) . The sale was a cornerstone of CEO Luca de Meo's strategy to slash debt and refocus on core luxury brands.
• By June 30, 2026, net debt had been slashed to €3.3 billion — a reduction of €4.7 billion from December 2025, driven primarily by the Beauté proceeds and free cash flow .
• Half-year 2026 free cash flow from operations was €2.6 billion, including €497 million from real estate net proceeds .

CEO Luca de Meo's Turnaround Outlook

• De Meo, who took over in 2025, has pursued a three-pronged strategy: reviving Gucci through refreshed product design and creative direction, aggressive debt reduction via asset sales (Beauté and some real estate), and elevating the jewelry division as a high-growth segment .
• The Q2 2026 results represent the first clear evidence that the turnaround is gaining traction. Gucci's -2% decline — versus -8% in Q1 2026 and -25% in Q1 2025 — shows a decelerating decline trajectory that investors had hoped for .
• Shares were poised to rise ~10% on the Q2 2026 beat , and Kering stated it expects "continued improvement" in the second half of the year.
• Key risks remain: geopolitical headwinds (notably the Iran conflict impacting European sentiment), uneven demand in China, and the need to sustain product momentum at Gucci beyond the initial new-handbag cycle .