In Europe the luxury sector the stock market is divided: on the one hand the 13% jump in Kering, which has shown signs of recovery of its flagship brand Gucci, on the other Hermes, the maker of the Birkin bag, which had resisted past storms better than its competitors, instead recorded modest sales, causing its stock to fall by 10%.
Kering jumps 13% thanks to Gucci's surprise performance. But de Meo is focusing on jewelry.
Kering shares jumped more than 13% this morning after quarterly results indicated unexpected signs of recovery of its flagship brand Gucci, thanks to the strong application in the United States for the her new bags. Shares are thus on track to record their best trading day since mid-January 2025, having lost around 17% since the beginning of the year. Kering's financial results have given investors hope that the recovery plan initiated by the CEO Luca de Meo, which also led to a debt reduction, is bearing fruit.
Il Gucci's turnover in the second quarter it stood at 1,4 billion euros, down by 2% on an organic basis, but above expectations Analysts had instead estimated a 4% decline. Although it marked the brand's twelfth consecutive quarterly decline in sales, the result represents a significant improvement compared to the 8% decline recorded in the previous quarter.
Overall, the sales by Kering are increased by 2% In the quarter, adjusted for currency fluctuations, Gucci's growth slightly exceeded analysts' expectations of 1,7%. According to RBC analysts, Gucci will need a significant turnaround in the second half of the year to achieve its goal of returning to full-year growth.
"We are still at the beginning of the journey and let's remain realistic, very realistic, about the challenges that await us," he said. DeMeo to analysts during a conference call, adding that he did not expect a linear recovery in growth for Gucci and that the third quarter could be “substantially flat”, although it was not immediately clear whether he was referring to Gucci or Kering as a whole.
Kering's shares listed in the United States rose sharply after the publication of its results. sales of Gucci in the United States, the luxury market with the best performances thanks to the new wealth resulting from the technological boom, are increased by 9% in the quarter, the CFO said Armelle Poulou, accelerating compared to the first three months of the year. Sales were supported by the launch of new bags, like the lines Purse e Paparazzo, as well as by an increased demand for men's bags, he told reporters.
“The dynamics goes far beyond Gucci“, said Poulou, pointing to the group's smaller brands as Saint Laurent, which he says has started growing again. The group also recorded a operating margin recurring 12,8% in the first half of the year, higher than analysts' forecasts (12,3%), but still well below competitors' levels.net borrowing Kering's net assets amounted to €3,3 billion at the end of June, down compared to 8 billion euros at the end of last year. The group closed 84 stores in the first half of the year, compared to the 100 expected for this year.
Once the group's flagship, Gucci has seen its sales halve over the past three years due to aggressive price increases and changing tastes that have alienated some customers. De Meo, who took over last year, told investors in April that he wanted to reduce Kering's dependence on the brand Gucci, expand the jewelry sector and more than double the group's profit margin over time. "We expect significant growth in the jewelry business for all our fashion houses," De Meo said today. "Gucci's recent high jewelry initiative in Times Square generated strong customer engagement and demonstrated expansion potential. We expect consensus estimates to increase modestly," they said.
But other luxury players aren't convincing investors. Hermes loses more than 10%.
Sales increased by 7% in the second quarter for Hermes, producer of Birkin bags slightly accelerating from the 6% of the previous quarter, failed to impress the market, making stocks drop by more than 10% on the Paris Stock Exchange after the data. In the second quarter, sales of products such as bags, silk scarves and perfumes Revenues rose 6,7% at adjusted exchange rates to €4,1 billion, in line with expectations and up from 6% in the first quarter, Hermès said.
The company, which carefully controls production and sales to maintain exclusivity, weathered the pandemic crisis better than its competitors and was the most resilient luxury group during a prolonged slowdown that affected the entire sector. However, growth fell below single-digit percentages in the first quarter after the conflict in the Middle East dampened consumer appetite from Dubai to Paris. According to the group, the impact of the conflict eased in the second quarter, while growth in France increased by 6% compared to the decline recorded in the first three months of the year. "In the second quarter, we are seeing an improvement in sales in our luxury stores," said the group. Paris“, said the CEO Axel Dumas, adding that the flow of tourists into the country has also increased.
Hermes in first semester achieved consolidated Group revenues of 8,2 billion euros, up 6% at constant exchange rates and 2% at current exchange rates compared to the same period in 2025. All regions They recorded growth, with the exception of the Middle East, which nevertheless demonstrated good resilience in a challenging environment. "In the first half of 2026, Hermès delivered a solid performance, reflecting the strong appeal of its 16 métiers and the trust of its customers. Convinced of the strength of our unique artisanal model and with full control of our key indicators, we look to the second half of the year with confidence," commented Hermès. Axel dumas, Executive Chairman of Hermès. Recurring operating income amounted to €3,4 billion (41,0% of revenue), a slight increase.
Hermes, which caters to an ultra-wealthy clientele with bags costing more than $10.000, said the leather goods division, which represents almost half of its turnover, is grew by 10% in the quarter, slightly below the Visible Alpha consensus of 10,8%. In the Asia-Pacific region excluding Japan, Hermès's largest revenue region, revenue grew 2,5% at current exchange rates, in line with the first quarter. Hermès shares have lost 20% since the beginning of the year.
Yesterday's data lvmh they showed A relatively modest improvement in sales failed to excite investors, due to lingering doubts about whether the $400 billion luxury goods sector can finally emerge from a prolonged recession, despite spending by US tech billionaires and renewed demand for jewelry. LVMH shares, which started up 3% today, erased their gains by late morning.
At Piazza Affari, among the protagonists of luxury, Moncler earns almost 2%, BRUNELLO CUCINELLI loses just as much.
