Kering Bounces Back with Revenue Growth in Q2 Amidst Operational Changes
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The luxury group Kering has reported an upturn in its performance for Q2, indicating a return to revenue growth. CEO Luca de Meo has attributed this encouraging development to the early signs of progress across Kering’s portfolio, following recent operational and commercial modifications.
Kering’s revenue for the second quarter reached $4.16 billion, a 1% year-on-year increase, bolstered by an improved retail performance. Comparable sales from directly operated stores witnessed a 2% surge, while wholesale and other avenues of revenue saw a 3% increase. De Meo expressed his satisfaction with Kering’s improved Q2 performance, pointing out the sequential acceleration of growth within the organization, including its Gucci brand, thanks to concerted actions carried out in recent months.
However, for the first half of the year, revenue stood at $8.22 billion, marking a 3% dip compared to the previous year. On a more positive note, recurring operating income hit the $1.04 billion mark, and the recurring operating margin saw an improvement, reaching 12.8%.
Kering attributes these results to its ongoing efforts to optimize its store operations. Following the closure of 75 net stores in 2025, the company closed an additional 84 net stores in the first half of 2026, in line with its objective of shuttering 100 stores this year.
Despite this positive trajectory, Kering noted the persistent geopolitical instability as a factor impacting trade in the Middle East, causing a slight reduction in the group’s second-quarter revenue growth by around one percentage point.
Sharing the company’s future plans, de Meo revealed that Kering would remain committed to execution, technology investments, and brand development. He emphasized the positive effects of the decisive steps taken by the company to enhance the uniqueness of its brands, streamline its organization, and boost effectiveness throughout the group.
Questions & Answers
What was Kering’s revenue for Q2?
Kering reported a Q2 revenue of $4.16 billion, marking a 1% year-on-year increase.
What steps is Kering taking to improve its performance?
Kering is focusing on enhancing the distinctiveness of its brands, streamlining its organization, and boosting effectiveness throughout the group. It has also been closing down stores and investing in technology and brand development.
What challenges is Kering facing in its operations?
Geopolitical instability, specifically in the Middle East, has been identified as a significant challenge. This has had a slight impact on Kering’s Q2 revenue growth.