Kering: Gucci Falls by 8% Again, but Jewelry Reaches Historic High
Kering shows stabilization in its revenue for the first quarter of 2026, marking a first step in its recovery trajectory. However, this overall performance hides deep divergences: while Gucci falls again by 8% in comparable data, jewelry reaches a record level with a growth of 22% and eyewear records its best quarter in history.
The French luxury group recorded a revenue of 3,568 million euros in the first quarter of 2026, down 6% in reported data but stable in comparable data compared to the same quarter in 2025. This stabilization comes after several quarters of contraction and represents what the management describes as a 'significant first step' in the group's recovery. However, performance varies greatly across divisions. The Fashion & Leather Goods segment, which accounts for 80% of revenue, shows a decline of 3% in comparable data to 2,852 million euros. Conversely, Kering Jewelry delivers a very strong performance with a record level of 269 million euros, marking an increase of 22% in comparable data. Kering Eyewear also has an excellent quarter with 489 million euros and a growth of 7% in comparable data, described as its best quarter in history.
Within Fashion & Leather Goods, Gucci, which generates 1,347 million euros in the quarter, falls by 8% in comparable data. Own-store sales are down by 9% in comparable data, a contraction that reflects the magnitude of the transformation underway. The management describes this quarter as 'decisively focused on execution', with strong decisions in terms of products, distribution, and customer relations. However, a first glimmer of hope appears in North America, where Gucci shows an increase of 8% year-on-year, according to the press release. This improvement does not offset the decline in Asia-Pacific and Western Europe. Meanwhile, other houses in the Fashion & Leather Goods portfolio are progressing: Saint Laurent, Bottega Veneta, Balenciaga, and Brioni are growing this quarter, particularly driven by strong dynamics in North America. This heterogeneity reveals the variable impact of recovery strategies across brands.
Beyond the numbers, Kering has finalized several major transactions since the beginning of 2026, which clarify its trajectory. The group has concluded its strategic partnership with L'Oréal in beauty, finalized a 20% stake in Raselli Franco Group (a jewelry manufacturer) for 115 million euros, and sold a landmark building on Via Monte Napoleone in Milan for 729 million euros in cash (with an additional 432 million euros to be paid in five years). Concurrently, the group has implemented a new organization with the creation of two centers of excellence (Industry and Client) and appointed senior executives to lead the transformation. The Capital Markets Day on April 16, 2026, will present the strategic roadmap 'ReconKering' intended to guide this new phase. The management specifies that 'the goal remains to return to growth and improve margins' in a geopolitical and macroeconomic environment that remains uncertain. The Middle East, which represents about 5% of retail revenue and has 1,100 employees and 79 stores, saw its retail revenue decline by 11% this quarter due to disruptions linked to the regional conflict, illustrating the group's vulnerability to external shocks.
