Kering revenue falls as Gucci declines persist despite early signs of recovery

Kering reported revenue of €3.56 billion (£3.1 billion) for the first quarter, down 6% as reported and "stable" on a comparable basis, with performance remaining mixed amid regional disparities and uneven brand momentum.

Sales from the group’s directly operated retail network, including e-commerce, declined by 2% on a comparable basis, with continued variation across regions and brands.

However, wholesale revenue increased by 6% year-on-year, supported in particular by sustained strength in eyewear.

The Fashion & Leather Goods segment generated revenue of €2.852 billion (£2.4 billion) in the first quarter of 2026, down 9% as reported and 3% on a comparable basis.

Gucci recorded revenue of €1.347 billion (£1.1 billion), down 14% as reported and 8% on a comparable basis.

Within this, North America posted growth of 8% year-on-year, suggesting early signs that the brand’s strategic reset is gaining traction, though this was offset by weaker performance in Asia-Pacific and Western Europe.

The group said Gucci’s product architecture reset is underway, with new collections being introduced throughout the year as part of the recovery strategy.

Elsewhere in the Fashion & Leather Goods division, Saint Laurent, Bottega Veneta, Balenciaga and Brioni all delivered year-on-year growth, led primarily by North America.

• Saint Laurent reported a "very strong" performance in shoes and ready-to-wear, supported by new product launches, including the Mombasa handbag.
• Bottega Veneta showed "solid momentum" in Asia-Pacific, driven by sustained brand appeal.
• Balenciaga recorded continued growth, supported by demand in leather goods.
• Brioni maintained a "very positive" trajectory.
• McQueen continued its rationalisation process, in line with efforts to reposition the brand.

Kering’s Jewellery division delivered an "outstanding performance", with revenue reaching a record €269 million (£233 million), up 14% as reported and 22% on a comparable basis.

Meanwhile, Kering Eyewear achieved a "landmark performance", reporting its highest quarterly revenue at €489 million (£424 million), reflecting "strong" demand across its portfolio.

Since the end of February, the conflict in the Middle East has remained an area of focus for the group. The region accounts for approximately 1,100 employees, 79 stores, and around 5% of retail revenue.

Retail revenue in the region declined by 11% in the first quarter, following growth in the first two months of the year. The group said it continues to monitor local impacts, as well as potential broader effects on global tourism and the macroeconomic environment.

"Against a backdrop of ongoing geopolitical and economic uncertainty, Kering is prioritising agility and execution, aiming to strengthen brand strategies and operational support across its Houses. The group’s objective for 2026 remains to return to growth and improve margins," the statement said.