Kering: Stable Revenue, Gucci Down 8%, but Three Major Deals Reshuffle the Deck
Kering is navigating between stabilization and reorganization. The luxury giant reported a flat revenue growth in the first quarter on Tuesday, while simultaneously finalizing three major transactions (beauty, jewelry, real estate) that strengthen its balance sheet and clarify its strategic priorities. The central question remains: will this financial and operational restructuring be enough to boost operational growth, particularly at Gucci, the heart of the group, whose performance continues to lag?
Financial Performance Overview
The group's revenue stood at 3,568 million euros in the first quarter, unchanged on a comparable basis. This stability marks a sequential improvement in the group's trajectory, according to the statement. However, it results from offsets between divisions. The Fashion & Leather Goods segment, the main revenue driver generating 2,852 million euros, recorded a 3% decline on a comparable basis. Gucci, singled out at 1,347 million euros, experienced an 8% decline on a comparable basis, although North America showed an 8% year-over-year increase. Conversely, Kering Jewelry reached 269 million euros, a record performance, with a 22% growth on a comparable basis. Kering Eyewear delivered 489 million euros, described as its best historical quarter, growing by 7% on a comparable basis. The Corporate & Other segment totaled 30 million euros.
Strategic Transactions and Organizational Restructuring
Alongside these results, Kering finalized a portfolio of transactions reshaping its architecture. The acquisition of 20% of Raselli Franco Group, a major European jewelry manufacturer, for 115 million euros, consolidates the Kering Jewelry platform. The partial sale through Al Mirqab Group of the flagship building in Milan (Via Monte Napoleone) generated 729 million euros immediately, with an additional 432 million expected in five years, Kering retaining a 20% stake in equity method. The strategic alliance with L'Oréal, finalized on March 31, transferred the beauty activities (including Creed) and fragrance licenses to the main brands. These operations enhance the group's liquidity and focus. Simultaneously, Kering restructured its organization with the creation of two centers of excellence (Industry and Client) and appointed new leaders: Pierre Houlès as head of Digital/AI/IT, Stéphane Noël as head of Industrial Operations, and Carlo Mocci as head of Client Relations.
Gucci Remains the Group's Absolute Priority
Gucci remains the group's absolute priority, according to CEO Luca de Meo. The first quarter was marked by significant structural efforts: redesign of the product offering, clarification of priorities by category, and gradual rollout of new collections in stores throughout 2026. Gucci's own retail sales declined by 9% on a comparable basis, but North America provided initial confirmation that the repositioning is beginning to bear fruit. However, Asia-Pacific and Western Europe continue to lag. The group also indicated increased vigilance in the Middle East: since the end of February, the regional conflict has been a subject of monitoring, affecting about 1,100 employees, 79 stores, and representing nearly 5% of retail revenue. The region's retail revenue declined by 11% in the first quarter after growth in the first two months. No employee has been directly affected to date, but the group is monitoring potential repercussions on global tourism and the macroeconomic environment. For 2026, the group is focusing on agility and rigorous execution, with the goal of returning to growth and improving margins. A Capital Markets Day scheduled for April 16 in Florence will present a detailed strategic roadmap, titled ReconKering.
