Kering: how Luca de Meo's financial overhaul is giving the luxury group breathing room and time

3.3 billion euros. In a word, as in a number, is Kering's financial trajectory finally changing? By reducing its debt by 4.7 billion euros in just six months, the world's number two luxury group has secured what it needed most: time and capital to complete its turnaround.

Presented on July 28, 2026, the half-year results show revenue of 7.22 billion euros (8.23 billion dollars) (+1 percent on a like-for-like basis). Beyond the overall revenue, a sequential analysis reveals a tangible change of pace. The second quarter (+2 percent on a like-for-like basis) confirms the initial effects of a drastic refocusing strategy led by its chief executive officer, Luca de Meo. Through targeted divestments, the rationalisation of its retail network and the strengthening of its Jewellery and Eyewear divisions, Kering is no longer at the mercy of the economic climate but is restructuring its model.

Sequential momentum validates turnaround plan

A comparative analysis of the first half (H1) and the second quarter (Q2) highlights the group's accelerated trajectory, driven by the exceptional performance of its non-fashion divisions.

Taken in isolation, these figures might seem relatively modest. Their reading, however, reveals a much more significant shift. Behind the limited 1 percent like-for-like growth in the first half lies a genuine redistribution of the group's performance drivers.

Historically dominant activities continue to weigh on the accounts, while businesses developed in recent years are beginning to take over. This shift highlights the logic behind the strategic decisions made by the new management over the past several months.

Division / House	Q2 2026 Revenue (M€)	Q2 LFL Var.	H1 2026 Revenue (M€)	H1 LFL Var.
Kering Fashion & Leather Goods	2 948	+0 %	5 800	-1 %
of which Gucci	1 410	-2 %	2 757	-5 %
Kering Jewellery	252	+18 %	521	+20 %
Kering Eyewear	476	+8 %	965	+8 %
TOTAL KERING	3 652	+2 %	7 220	+1 %

Fashion division rationalises as Gucci initiates its turnaround

While the Kering Fashion & Leather Goods division declined by 1 percent over the half-year (to 5.80 billion euros), its stability in the second quarter (+0 percent on a like-for-like basis) suggests that the lowest point has likely been reached.

This performance is part of a deliberate streamlining of the retail network. The group closed 84 directly-operated stores in the first half (following 75 closures in 2025), representing a 5 percent reduction in its overall physical footprint.

At Gucci, the group's prodigal yet troubled child, the sequential improvement appears to be taking effect. Revenue reached 1.41 billion euros in Q2 (-2 percent on a like-for-like basis), marking a 7-point gain in its directly-operated network compared to the first quarter. Budgetary discipline has raised the house's recurring operating margin to 17.0 percent (+1.0 percentage points).

The early signing of the 50-year beauty licence with L’Oréal for Gucci Beauty (and the acquisition of rights from Coty) secures the brand's value for the very long term.

Clinical execution of divestments

The reduction in financial debt (from 8.0 to 3.3 billion euros) is commendable and bears the direct mark of the industrial decisions led by Luca de Meo, chief executive officer of Kering.

“These first-half results demonstrate the positive impact of the decisive measures we have implemented to strengthen the uniqueness of our brands, simplify our organisation and increase the efficiency of the entire Group,” stated Luca de Meo.

Indeed, this statement is reflected in radical decisions and uncompromising execution:

• Rebuilding the war chest: The finalisation of the sale of Kering Beauté to L’Oréal on March 31, 2026, brought in 4.0 billion euros in net cash.

• Monetisation of non-strategic assets: The partial sale of the building at 8 Via Monte Napoleone in Milan with Al Mirqab Group generated an immediate inflow of 729 million euros (with a further 432 million euros expected within five years).

• Acknowledged restructuring: The group recorded 223 million euros in non-recurring charges in H1, accepting the cost of store closures and internal reorganisations to permanently lower its financial break-even point.

Jewellery and Eyewear: highly profitable growth drivers

While the fashion division undergoes its refocusing, the diversified divisions are establishing themselves as powerful drivers of profitability.

• Kering Jewellery (+20 percent on a like-for-like basis in H1): With 521 million euros in revenue and an operating margin soaring by +2.7 percentage points (to 6.2 percent), the division is reaping the rewards of its restructuring. Boucheron continues to break records in the Asia-Pacific region, while the division's directly-operated store network has grown by +28 percent.

• Kering Eyewear (+8 percent on a like-for-like basis in H1): The division surpassed the 965 million euro mark and posted an exceptional operating margin of 23.0 percent (+2.9 percentage points). Driven by the launch of Valentino eyewear and the relaunch of Maui Jim, the division is asserting itself as one of the group's most profitable gems.

A healthier financial profile to tackle the next cycle

With an operating free cash flow of 2.6 billion euros for the half-year and a cash cushion of 8.5 billion euros, Kering enters the second half of the year with a restored balance sheet.

Between the appointment of new leaders at the helm of its houses (Romain Spitzer at Bottega Veneta, Gianfranco D’Attis at Alexander McQueen) and the launch of the Kering Accademia, the group is reaffirming its ambitions. Above all, its acquisition of a minority stake in ICCF (owner of ICICLE) aligns with a trend observed among industry conglomerates: investing in premium 'gems' with strong identities, founded on quiet luxury, eco-design and exceptional craftsmanship.

By betting on these new players in fashion and carrying out a welcome financial overhaul, Kering is consolidating a more agile, diversified and financially equipped organisation to tackle the next luxury cycle.