Gucci Beat Sparks Kering Rally as Luxury Rivals Fail to Impress
By Reuters | 29 Jul, 2026

Kering shares surged as much as 11% after flagship brand Gucci delivered better-than-expected quarterly sales as markets were unimpressed by luxury sector rivals.

FILE PHOTO: A model presents a creation from the Gucci Cruise 2027 collection at Times Square in New York City, U.S., May 16, 2026. REUTERS/Eduardo Munoz/File Photo

Shares in Kering surged as much as 11% after flagship brand Gucci delivered better-than-expected quarterly sales, lifting hopes that CEO Luca de Meo's turnaround efforts are gaining traction even as results from rivals left the market cold.

Kering's stock was up 11.8% at €279.90 ($319) by 0800 GMT, on track for its best trading day since mid-January 2025, after strong U.S. demand for its new handbags lifted Gucci sales and amid concrete debt-cutting efforts by de Meo.

"We believe the group is focusing on the right priorities to regain momentum and re-engage with the aspirational customers particularly for the Gucci brand," HSBC analysts said in a note to clients, upgrading the stock to "buy" from "hold".

A relatively muted sales improvement at industry bellwether LVMH failed to excite investors on Tuesday amid lingering questions over whether the $400 billion luxury industry may be finally emerging from a prolonged downturn, despite spending by U.S. tech millionaires and renewed demand for jewellery.

LVMH shares opened up 3% on Wednesday after a wobbly trading session on Tuesday.

Birkin bag maker Hermes reported on Wednesday only a slight acceleration in organic sales, sending its shares down over 4%.

GUCCI TURNAROUND GATHERS MOMENTUM

Gucci's second-quarter revenue dipped 2% on an organic basis, the brand's 12th straight quarterly sales drop, but the result beat analysts' forecasts and was a significant improvement from the previous quarter.

Once Kering's profit engine but recently experiencing years of weakening demand, Gucci aims to return to full-year growth this year, as part of de Meo's plan to revive the €30 billion French conglomerate's fortunes.

The plan includes 100 store closures by year end and a €1 billion cut of the group's inventories within 12 months. De Meo said in April he aims to turn Gucci into a "fully client-obsessed organisation" with fewer stores but a better understanding of its clients across regions.

On Tuesday he said the brand's growth will not be linear and the third quarter, which analysts expected to be a turning point, may be "flattish".

The brand will require a strong upward swing in sales in the second half to meet its goal to return to full-year growth, RBC analysts said in a note.

($1 = 0.8771 euros)

(Reporting by Alessandro Parodi in Gdansk; Editing by Milla Nissi-Prussak and Jan Harvey)