Kering Reports Return to Growth as Operational Restructuring Takes Hold

The luxury conglomerate Kering returned to comparable growth in the second quarter of 2026, signaling that its ongoing operational restructuring is beginning to stabilize the business. The group reported improved performance across its directly operated retail network, which narrowed its decline to 2 percent compared to the first quarter. This shift suggests that recent efforts to streamline operations and refine brand positioning are starting to yield measurable results for the Paris-based company. Growth was particularly strong in the jewelry and eyewear segments, which have become vital pillars for the group's financial health. Jewelry grew 18 percent on a comparable basis, while the eyewear division advanced 8 percent during the same period. Together, these two categories represented approximately 21 percent of the group's first-half revenue and 28 percent of its recurring operating income. Kering Chief Executive Officer Luca de Meo has been overseeing a comprehensive strategy to reignite the desirability of the group's fashion houses. This plan includes a focus on disciplined creative direction and a revitalized approach to heritage brands like Gucci. The company is also working to consolidate its industrial backbone by integrating core capabilities across purchasing, logistics, and manufacturing. Retail rationalization remains a key component of the group's current business model. Kering is moving toward a target of 100 store closures for the full year, following the shuttering of 75 locations in 2025. This strategy aims to create a more efficient and focused retail footprint that aligns with current market demand. Despite the positive momentum in specific categories, the group continues to face pressure in mainland China. Executives noted that while trends showed signs of strengthening during the quarter, the region remains a challenging environment for luxury sales. The company is responding with renewed client engagement efforts and increased visibility for recent product launches. Beyond financial performance, Kering is actively reshaping its governance and sustainability frameworks. On September 29, the group partnered with the Center for Sustainable Fashion at the London College of Fashion to host an event focused on new decision-making mechanisms. This initiative aims to incorporate a wider diversity of voices and perspectives into the governance structures of luxury companies. Sustainability remains a central theme in the group's long-term development strategy. Kering Eyewear recently held its annual Sustainability Day in Montebelluna, bringing together manufacturing partners to discuss circularity and resource optimization. The event focused on finding ways to give waste materials a second life within the production value chain. Innovation in the supply chain is also being supported through regional partnerships. The group recently launched the second edition of the Kering Generation Award in the Middle East and North Africa, which provides mentorship and resources to startups focused on regenerative materials and clean production. These efforts are designed to foster long-term environmental responsibility across the industry. Kering is also investing in the next generation of creative talent through programs like Kering CRAFT, which launched in collaboration with Shanghai Fashion Week. This initiative identifies promising designers and provides them with residency opportunities in Milan, Paris, and Shanghai. The goal is to help these designers build business skills while fostering the emergence of global fashion brands. As the luxury market continues to navigate a period of stabilization, Kering is positioning itself to lead what it calls the next phase of luxury. This involves a focus on new technologies, evolving client expectations, and the expansion into new product categories. The company maintains that its current restructuring is a necessary step toward achieving sustainable, long-term growth.