The Tamesis
On Tuesday, Kering Group reported stable comparable revenue growth in the first quarter of 2026, at 3.57 billion euros.
The group’s fashion and leather goods sales fell 3% to 2.85 billion euros, missing consensus expectations for a 2% decline. As for its largest brand Gucci, sales reached 1.35 billion euros, and sales fell by 8%, which was also lower than the market consensus of -6%. But it marked a slight improvement in performance for the Italian brand, which fell 10% last quarter.
“Gucci remains our top priority,” Kering CEO Luca de Meo said in a statement. “A comprehensive transformation is underway, with customers, distribution and, most importantly, decisive action taken. [product] supply. We have realigned our product architecture and strengthened our category focus, and will launch new collections in stores throughout the year. “
Demna’s residential designs begin with La Famiglia and gradually make their way into the shops throughout the season. Chief Financial Officer Armelle Poulou noted that La Famiglia accounted for more than 7%-8% of SKUs and sales in the first quarter, while Primavera, which follows a see-now-buy-now model in limited quantities, received a positive response. “[The good traction] “We will launch the full Primavera range in the summer,” she told investors. Poulou also highlighted the performance of the Marmont handbag. “We are very pleased with the success of the new Marmont relaunch. The product has been replicated with better quality and slightly improved design.”
Kering Group said that Gucci’s North American retail sales increased by 8% year-on-year, but this was not enough to make up for the decline in performance in Asia and Europe. Regarding Gucci’s poor performance in China, Poulou added: “We have a dedicated plan for China. We are rebuilding culturally relevant elements through sharper storytelling, stronger ambassadors and region-specific campaigns, while working to improve and upgrade our store network.”
As a group, retail sales fell 7% in Western Europe, up 9% in North America, down 3% in Japan, down 4% in Asia Pacific and down 8% in the rest of the world, including the Middle East. The Middle East currently accounts for about 5% of Kering’s retail sales, and revenue there fell 11% in the first quarter.
Bottega Veneta, Saint Laurent, Balenciaga and Brioni all posted growth, the group said. Poulou said Bottega Veneta had the strongest growth in the first quarter, while Balenciaga had the highest sequential improvement. (Kinging Group has changed its segment reporting starting from this quarter and will no longer break down the revenue of each brand except Gucci.)
Investors asked Pierpaolo Piccioli about new product creation under Balenciaga. “This will help us strengthen the identity without compromising its strengths,” Pulu said. “If you’ve been to the store, you can already see his influence, especially in women’s ready-to-wear, and Balenciaga’s influence is even greater. Balenciaga is very menswear-oriented in ready-to-wear. In addition to new ideas, we are also happy to see that the handbag category is developing very well. The Rodeo and City bags are very successful in all regions.”
Kering’s jewelery division, which includes Boucheron, Pomellato, Dodo and Qeelin, rose 22% to 269 million euros. Kering Eyewear rose 7% to 489 million euros.
Luca Solca, a luxury goods analyst at Bernstein, said the latest financial report confirmed the difficulty of turning a profit for Kering Group. “The market believes that recovery will be easier and faster than achieving it,” he said, referring to the rise in Kering’s share price since de Meo took over in June 2025. Kering will host a Capital Markets Day in Florence on April 16, where de Meo is expected to present his group’s strategy.
Poulou said: “Our mission is to return all brands except McQueen to full-year growth.” McQueen is undergoing a restructuring involving layoffs. “That doesn’t mean we don’t believe in McQueen,” DeMeo told reporters in February. “This means the structure is too heavy for its potential.”
