Shares in Gucci Owner Kering Surge as Recovery Gains Traction

By Andrea Figueras

Shares in Kering jumped after the French luxury group recorded a rise in revenue, as the group seeks to turn a page after years of weak demand for its upscale brands.

The Gucci owner booked revenue of 3.65 billion euros ($4.16 billion) for the second quarter, a 1% increase compared with the same period last year in reported terms. Excluding currency and portfolio changes, revenue was up 2%.

Analysts had forecast revenue of 3.63 billion euros, according to a poll of estimates compiled by Visible Alpha.

The company's flagship label Gucci reported sales of 1.41 billion euros, down 2% organically on year. While still lower, the decline was better than the 5% drop expected by analysts.

The stock was up 11% at 277.55 euros in European morning trading. Over the past 12 months, shares have risen around 31%.

The results confirm that the core brand is making progress, analysts at RBC Capital Markets said in a research note.

Gucci sales from directly operated stores were still negative, but improved 7 percentage points compared with the previous three months. This marks Gucci's strongest sequential acceleration in several quarters, Kering said.

Earlier this year, Kering unveiled a number of initiatives to restore the appeal of its brands, particularly Gucci, under the leadership of Luca de Meo, who took the reins of the group in September 2025.

Analysts at Bernstein pointed out that Gucci appears to be on the right track, adding that they expect growth to accelerate in the second half of the year, driven by the arrival of new products in stores.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 29, 2026 04:12 ET (08:12 GMT)