Kering begins recovery: between stabilising results and “ReconKering”

The verdict came in this Tuesday for Kering. With revenue of 3,568 million euros in the first quarter of 2026, the luxury group finally stabilised its revenue on a comparable basis. Organic growth remains at a standstill. Yet this 0 percent stagnation on a comparable basis marks the end of a freefall period and validates the foundation on which Luca de Meo intends to build his turnaround plan.

Revenue seeks balance

The first quarter closed with stable trading (0 percent) on a comparable basis, although the 6 percent decline in reported figures is a reminder of the impact of recent scope adjustments. This plateau suggests the group is finally stemming the losses. Luca de Meo attributes the performance to the first tangible effects of more rigorous operational execution. The contrast between channels remains sharp, however. While the directly operated retail network fell 2 percent, wholesale rose 6 percent, driven by an eyewear division that is asserting itself as a source of resilience.

Gucci: Start of transatlantic rebound

A vital engine for the group, Gucci remains in recovery mode, with revenue of 1,347 million euros, down 8 percent on a comparable basis. Asia-Pacific and western Europe still weighed negatively on performance, but North America delivered a strong signal with growth of 8 percent. This rebound in the US validates the first measures to reposition the offer. The strategy now rests on a drastic rationalisation of product categories and a more sequenced roll-out of collections throughout the year to restore brand desirability.

Property disposals: 729 million euros in immediate liquidity

Kering appears to have taken on board criticism of its past property appetite.

Kering used the quarter to monetise part of its Milan real estate portfolio. The group struck an agreement with Al Mirqab Group concerning the asset at 8 via Monte Napoleone, one of the most prestigious luxury streets in the world. The transaction enables Kering to collect 729 million euros on completion, with a further 432 million euros to be added in five years. The group retains a 20 percent stake in the new dedicated structure. Even so, this partial disposal illustrates a priority on strengthening the balance sheet, which has been heavily strained in recent years by these property acquisitions, and on financial flexibility rather than direct ownership of real estate.

Middle East exposure: First quantified assessment

In an effort to provide greater visibility for the market, the group isolated the performance of its Middle East operations, a region accounting for 5 percent of its retail sales. While the start of the year was promising, the escalation of the conflict sharply reversed the trend from late February. Retail revenue in the region ended the quarter down 11 percent. Beyond the local impact, management is closely monitoring the potential repercussions for international tourist flows, traditionally a key consumption driver for the group’s Houses.

Jewellery and eyewear as stabilisers

While leather goods are being reorganised, the “Jewelry” and “Eyewear” segments are emerging as effective growth drivers:

Kering Jewelry posted growth of 22 percent on a comparable basis, driven by the strength of Boucheron. The creation of a dedicated entity in March, led by Jean-Marc Duplaix, underlines the ambition to structure this division as an autonomous platform.
Kering Eyewear delivered its best quarter on record at 489 million euros, boosted by the integration of leading licences such as Valentino.

Platform strategy and “ReconKering” plan

Kering’s overhaul is not limited to sales. The group finalised its strategic alliance with L’Oréal in beauty and created two centres of excellence, “Industry” and “Client”, to increase the operational efficiency of its Houses.

The high point of this transformation is expected on April 16, 2026, in Florence. The Capital Markets Day will provide an opportunity to outline the “ReconKering” plan, which is expected to set new medium-term margin and organic growth targets.

This article was translated to English using an AI tool.

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