Kering profit falls 60% as Gucci decline eases

Kering said Tuesday that half-year net profit fell 60 percent to 189 million euros, even as a smaller sales decline at Gucci helped the French luxury group show signs of recovery in the second quarter.

Half-year sales fell three percent on a reported basis to 7.2 billion euros. Stripping out currency exchange rates and changes to the business, sales rose one percent.

Second-quarter sales rose one percent on a reported basis to 3.7 billion euros and gained two percent on a comparable basis.

Chief executive Luca de Meo said Kering was seeing early signs of progress in brand desirability, commercial momentum and operating performance. He said the quarter showed sequential acceleration, including at Gucci.

Gucci remains central to Kering but has been under pressure since 2023. Its second-quarter reported sales fell three percent to 1.4 billion euros, after declines of eight percent in the first quarter and 10 percent in the final quarter of last year.

De Meo presented a new strategy in April for the Paris-based group, which also owns Yves Saint Laurent and Bottega Veneta. The strategy aims to restore Gucci's exclusivity and boost leather goods across the group.

Kering said leather goods had returned to growth and that all global regions showed improvement. The company said its objective remained to return to growth and improve margins despite an uncertain geopolitical and macroeconomic environment.