Paris (France) (AFP) – Improvement at troubled Italian fashion house Gucci helped sales at Kering edge high in the second quarter, the French luxury group said Tuesday. Kering nevertheless reported that half-year net profit fell by 60 percent to 189 million euros ($216 million), due in large part to exceptional items. Half-year sales dipped three percent to 7.2 billion euros on a reported basis, but once currency exchange rates and changes to the business are stripped out, they edged one percent higher.
The sales performance improved in the second quarter, rising one percent on a reported basis to 3.7 billion euros, and a two percent gain on a comparable basis. “Across the Group, we are seeing early signs of progress in brand desirability, commercial momentum and operating performance,” chief executive Luca de Meo said in a statement. “The quarter also showed sequential acceleration, including at Gucci, driven by the actions taken over recent months,” he added.
Gucci is key to Kering’s fortunes but has been in freefall since 2023 as the brand lost its luxury cachet. It used to generate more than half of Kering’s revenue, but that had fallen to 40 percent in 2025. Gucci’s second quarter sales still fell, but the three percent drop in reported sales to 1.4 billion euros was much better than the eight percent drop registered in the first quarter and the 10 percent fall in the final quarter of last year.
De Meo presented in April a new strategy for the Paris-based conglomerate — which also owns Yves Saint Laurent and Bottega Veneta — to investors in Florence, home of its flagship double-G brand. In addition to restoring Gucci’s sense of exclusivity, the strategy aims to boost leather goods across the whole group. Leather goods have returned to growth, the company said, and all global regions showed improvement.
Overall, the fashion and leather goods division, which includes Gucci as well as Balenciaga, Brioni, and McQueen, saw steady sales on a comparable basis. “As Kering advances through 2026, its objective remains to return to growth and improve margins” despite the uncertain geopolitical and macroeconomic environment, the company said.
© 2024 AFP
