Kering opened 2026 with early indications that its restructuring programme is beginning to steady performance, even as luxury demand remains uneven and geopolitics continues to cloud consumer sentiment in key markets. The group said its strategic reset is starting to show “tangible effects” in trading, while the overhaul of Gucci—still the company’s most important label—remains front and centre through changes to product, distribution and client strategy.
For the first quarter, Kering Q1 2026 revenue totalled €3.568 billion (about $4.21 billion). That was down 6% year on year on a reported basis, but the company said sales were stable on a comparable basis, suggesting momentum is no longer deteriorating at the pace seen previously.
CEO Luca de Meo said the quarter marked a turning point in the trajectory. “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,” said Luca de Meo, CEO of Kering.
By channel, direct-to-consumer remained mixed. Comparable retail revenue—including e-commerce—fell 2%, reflecting uneven performance by geography, while wholesale revenue increased 6%, providing a partial offset.
Within Fashion & Leather Goods, the group posted €2.852 billion in revenue. That represented a 9% decline on a reported basis and a 3% drop on a comparable basis. Comparable direct retail sales for the segment decreased 4%. Kering said Saint Laurent, Bottega Veneta, Balenciaga and Brioni were the main sources of resilience, with North America a particular bright spot for several houses. Segment wholesale revenue rose 2%.
At brand level, Gucci continued to weigh on the group. The label generated €1.347 billion in revenue, down 14% reported and 8% comparable. Retail revenue declined 9% on a comparable basis. Kering said North America grew 8%, but that strength was outweighed by weaker trading in Asia-Pacific and Western Europe.
De Meo reiterated that Gucci’s recovery remains the priority and said work is focused on the offer as well as distribution and client experience. “Gucci remains our top priority. A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer,” added de Meo. “We have reset the product architecture and strengthened category focus, with new collections rolling out progressively in stores throughout the year.”
Kering also highlighted the Middle East as an area of continued strategic attention, accounting for roughly 5% of retail revenue. The group operates 79 stores in the region and employs around 1,100 people there. Regional retail revenue fell 11% in Q1 after previous growth, which Kering linked to geopolitical tensions, though it said all stores remain open.
Beyond sales performance, Kering said it continued to reinforce its operating model during the quarter, including building shared capabilities intended to support its houses and lift efficiency. “The first quarter of 2026 marked continued progress, as we executed with pace and focus. We have launched a Group platform designed to support the growth of our Houses and enhance efficiency,” said de Meo.
Kering said it remains focused on restoring growth and improving margins through 2026, positioning the stabilisation seen in Kering Q1 2026 revenue as an initial step rather than a completed turnaround—particularly with Gucci still in the middle of a multi-pronged reset.
