French luxury group Kering reported a drop in first-quarter sales for 2026, while pointing to signs of gradual improvement ahead of a planned strategy update aimed at reviving growth.
The group posted revenue of €3.56bn ($4.19bn) for the period, down 6% on a reported basis but flat on a comparable basis versus the same quarter last year.
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Performance was notably impacted by Gucci, within the fashion and leather goods segment, where revenue reached €1.34bn, representing a decline of 14% as reported and 8% on a comparable basis.
Overall, the fashion and leather goods division generated €2.85bn in revenue, decreasing 9% on a reported basis and 3% on a comparable basis, indicating sequential improvement during the quarter.
Kering CEO Luca de Meo said: “In the first quarter of 2026, group revenue stabilised, marking an important first step in our recovery and a further sequential improvement. This performance reflects the first tangible effects of our actions, despite a challenging geopolitical environment.
“Gucci remains our top priority. A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer.”
Sales from directly operated stores, including e-commerce, edged down 2% on a comparable basis, reflecting varied regional trends.
Wholesale revenue, however, increased by 6%, supported partly by continued momentum in eyewear.
Within the fashion and leather goods division, growth was recorded at Saint Laurent, Bottega Veneta, Balenciaga and Brioni, driven by demand in North America.
Meanwhile, Alexander McQueen continued its “rationalisation” efforts.
The group’s jewellery division reported “record” quarterly revenue of €269m, rising 14% as reported and 22% on a comparable basis.
Boucheron led performance while Pomellato, DoDo and Qeelin also delivered growth.
Kering Eyewear recorded revenue of €489m, up 3% on a reported basis and 7% on a comparable basis, marking its “highest” quarterly result to date.
During the quarter, Kering and L’Oréal finalised their previously announced partnership in beauty, including L’Oréal’s acquisition of Kering Beauté and related licensing agreements.
The company also highlighted continued difficulties in the Middle East, where conflict since late February has affected demand.
The region represents 5% of retail revenue, with sales declining 11% during the quarter despite stores remaining operational.
Kering said it remains focused on “agility” and operational execution in a challenging geopolitical and macroeconomic environment, intending to return to growth and improve margins through 2026.
