Kering Returns to Growth as Turnaround Strategy Gains Momentum
French luxury group Kering reported its first comparable sales increase in three years during Q2, driven by CEO Luca de Meo's turnaround strategy. The company recorded a 1% revenue rise at current exchange rates and a 2% organic growth rate for the quarter, outperforming market expectations. Gucci, despite still declining organically (-2%), showed signs of improvement with new product launches and marketing efforts under creative director Demna. Kering closed 84 stores in H1 as part of its plan to shutter 100 by year-end while reducing inventory levels and debt. The CEO emphasized that the turnaround is gaining traction but cautioned against expecting a linear recovery, noting potential flat performance in Q3 due to tougher comparisons with last year. Recurring operating profit remained stable at €921 million for H1, exceeding forecasts, with an improved recurring margin of 12.8%. Kering reaffirmed its guidance for growth and profitability improvement in 2026.
Topics: luxury retail_growth turnaround_strategy