Kering’s flagship label Gucci posted a smaller-than-expected decline in second-quarter revenue, the group reported, as stronger demand in the United States for recent handbag launches helped counter softer consumption elsewhere.
Gucci recorded sales of €1.4 billion in the quarter, a 2% drop from the year-ago period. That outcome was above analyst projections, which pointed to a steeper fall to around €1.37 billion - a roughly 4% decline, according to consensus data cited in the company update.
Management framed the result as a sign of progress in Kering’s turnaround strategy under Chief Executive Officer Luca De Meo, who has pledged that Gucci will return to full-year growth this year as new collections by designer Demna reach retail floors. The second-quarter performance represents an improvement from the prior quarter, when Gucci sales fell 8%.
Still, the second-quarter result continues a longer streak of revenue contraction at Gucci; this marks the 12th consecutive quarter of year-on-year sales declines for the brand, which has historically been one of Kering’s main profit contributors.
Geographically, the United States stood out. Finance chief Armelle Poulou said Gucci sales in the U.S. rose 9% in the quarter, an acceleration compared with the first quarter of the year. The company highlighted that U.S. demand for its new handbags was a key offset to weaker spending in other regions.
At the group level, Kering’s sales expanded by 2% in the quarter on a currency-adjusted basis, marginally beating analyst forecasts of about 1.7% growth. Investors will be watching whether this trend can be sustained as the company works to restore growth momentum across its portfolio.
Market sentiment has not fully recovered: Kering’s shares remain lower year-to-date, down roughly 17% so far this year. The report also noted the currency conversion used in the release: $1 equals 0.8778 euros.
Context and analysis
The quarter’s figures reflect a mix of encouraging signs and persistent challenges. A smaller-than-anticipated revenue decline at Gucci and outperformance in the U.S. provide evidence that recent product launches are resonating with consumers in at least one key market. However, the continued long run of quarterly declines underscores the work still required to return the brand to sustained growth.