Kering's H1 revenue edges past estimates on Gucci improvement, North America demand

Kering SA

28/07/2026 16:54

Overview
France luxury group's H1 revenue up 1% on comparable basis, slightly beating analyst expectations
Recurring operating margin for H1 improved to 12.8% from 12.4%
Net income attributable to the group dropped 60% yr/yr

Outlook
Kering says market environment remains demanding amid geopolitical and macroeconomic uncertainty
Company aims to return to growth and improve profitability in 2026

Result Drivers
GUCCI SEQUENTIAL IMPROVEMENT - Gucci saw marked sequential acceleration in Q2, driven by new collections and stronger client engagement, with North America as a key growth driver
JEWELRY AND EYEWEAR GROWTH - Kering Jewelry and Eyewear segments delivered strong double-digit and high single-digit revenue growth, supported by new product launches and robust demand in Asia Pacific, Japan, and North America
STORE NETWORK OPTIMIZATION - Revenue performance was achieved alongside ongoing store network optimization, with 84 net closures in H1 2026 as part of the group's plan to reduce directly operated stores
MIDDLE EAST IMPACT - Ongoing crisis in the Middle East negatively impacted group revenue growth by 1 percentage point in Q2

Company press release: ID:nGNE4vXNyG

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Slight Beat*
EUR 7.22 bln
EUR 7.20 bln (5 Analysts)
H1 Net Income
 
EUR 189 mln
 
H1 Operating Margin
 
12.8%
 
H1 Recurring Operating Income
 
EUR 921 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 18 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Kering SA is €280.00, about 15.3% above its July 27 closing price of €242.85
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads
July 27 - France's LVMH H1 revenue edges past estimates, aided by jewelry, Sephora strength 
July 27 - France's Dior H1 revenue falls amid Middle East conflict 
July 27 - As fashion stumbles, jewellery will help shape luxury's winners

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)