French luxury group Kering reported €7.22 billion in revenue for the first half of 2026, down 3% as reported but up 1% on a comparable basis compared to the same period last year. The Group posted recurring operating income of €921 million, with its recurring operating margin improving to 12.8% from 12.4% a year earlier.

Net income attributable to the Group totalled €189 million, while free cash flow from operations reached €2.6 billion. Kering also reduced its net debt to €3.3 billion from €8.0 billion at the end of 2025, supported by a strong cash position of €8.5 billion.

When we look at Kering’s Fashion & Leather Goods division, it generated €5.8 billion in revenue during the first half of 2026, down 5% as reported and 1% on a comparable basis from the same period last year, as improving performance at several luxury brands helped offset continued weakness at Gucci.

The segment recorded €2.95 billion in revenue during Q2, down 1% as reported but flat on a comparable basis, reflecting continued sequential improvement compared with Q1

Recurring operating income for the Fashion & Leather Goods division reached €828 million in H1 2026, while recurring operating margin improved to 14.3%, up 0.7% points YoY.

Within the division, Gucci generated €2.76 billion in H1 revenue, down 9% as reported and 5% on a comparable basis. However, the brand showed signs of recovery during Q2 with revenue reaching €1.41 billion, representing a 3% reported decline and 2% comparable decline its strongest sequential improvement in several quarters.

Among Kering’s other luxury houses, Saint Laurent returned to growth during H1 2026, driven by strong demand in North America and Western Europe as new collections gained momentum.

Bottega Veneta continued to outperform, with all regions recording sequential improvement, supported by strong performance in its leather goods category.

Meanwhile, Balenciaga continued to navigate its creative transition, although Kering noted that leather goods remained a source of strength for the brand. Brioni also delivered another quarter of strong performance.

Across the Fashion & Leather Goods segment, sales through directly operated stores declined 2% on a comparable basis during H1 2026, while wholesale and other revenue increased 2%.

Kering continued to optimize its retail network, completing 84 net store closures during the first six months of 2026 as part of its plan to close around 100 stores during the year.

Looking ahead, the Group said it remains focused on returning to growth and improving profitability despite ongoing geopolitical and macroeconomic uncertainty, adding that it will continue supporting each of its luxury houses through sharper brand strategies, operational discipline and agile execution.