Kering continues turnaround after weak Q1

Kering said on April 14 that first-quarter 2026 revenue fell 6% on a reported basis to 3.568 billion euros, while comparable sales were stable, as the French luxury group pressed ahead with a turnaround centered on Gucci. The company said Gucci revenue dropped 14% reported and 8% on a comparable basis to 1.347 billion euros in the quarter. Chief Executive Luca de Meo said the quarter marked “an important first step” in Kering’s recovery and described Gucci as the group’s “top priority.” The update gave investors the clearest official snapshot so far of how Kering is framing the early months of its reset under de Meo. The company said a “comprehensive turnaround” at Gucci was under way across client strategy, distribution and product offer, with new collections rolling out progressively in stores during 2026. Kering also said it had completed transactions in beauty, jewelry and real estate that it said sharpened the group’s focus and strengthened its balance sheet. (kering.com) ### How weak was the first quarter, and where did the pressure come from? Kering reported 3.568 billion euros in first-quarter revenue, down from 3.813 billion euros a year earlier, according to its April 14 press release. The Fashion & Leather Goods division generated 2.852 billion euros, down 9% reported and 3% on a comparable basis. Gucci accounted for much of the decline, with first-quarter revenue of 1.347 billion euros versus 1.571 billion euros a year earlier. (kering.com) Sales in Kering’s directly operated retail network, including e-commerce, fell 2% on a comparable basis, while wholesale revenue rose 6% on a comparable basis, helped by eyewear, the company said. Jewelry revenue rose 14% reported and 22% on a comparable basis to 269 million euros, while eyewear revenue increased 3% reported and 7% on a comparable basis to 489 million euros. (kering.com) ### What exactly is Kering saying it is doing at Gucci? Luca de Meo said in the release that Kering had “reset the product architecture” at Gucci and strengthened category focus. He said new collections would roll out progressively in stores throughout the year, tying the recovery effort directly to product changes rather than a single event or launch. (kering.com) The company also said the Gucci plan covered client, distribution and offer. That language points to a broad operational reset inside the brand, including how merchandise is presented and where it is sold, though Kering did not publish a separate Gucci margin figure in the first-quarter statement. (kering.com) ### What did management say about the wider group? De Meo said nearly all of Kering’s houses delivered growth in the quarter, with a “particularly strong contribution” from jewelry. He said the first quarter showed “the first tangible effects” of the group’s actions despite what he called a “challenging geopolitical environment.” (kering.com) Kering said it had launched a group platform to support the growth of its houses and improve efficiency. In the same statement, the company linked recent moves in beauty, jewelry and real estate to a stronger balance sheet, presenting those steps as part of the broader recovery effort rather than as stand-alone transactions. (kering.com) ### When does Kering next lay out the plan in public? Kering said on April 14 that it would present its strategic roadmap, called “ReconKering,” at a Capital Markets Day in Florence on April 16. In that statement, de Meo said he looked forward to using that event to detail the group’s strategy. (kering.com) The company’s next scheduled shareholder event is its Annual Shareholders’ Meeting on May 28, 2026, at Kering’s headquarters in Paris, according to the group’s investor relations website. Kering said the meeting would be broadcast and that a video recording would be made available afterward. (kering.com 1) (kering.com 2)