Paris-based luxury group Kering reported Tuesday that its flagship brand Gucci saw a 2% drop in second-quarter sales compared to the same period last year — a better outcome than Wall Street had anticipated, thanks in large part to growing demand from American consumers for the brand’s newest handbag designs.
Gucci’s total revenue for the quarter came in at €1.4 billion, which translates to roughly $1.6 billion. That figure surpassed analysts’ average forecast of €1.37 billion, which had projected a steeper 4% decline, according to data from Visible Alpha.
The stronger-than-expected showing may help ease investor concerns about whether the company is making meaningful progress on its recovery strategy. Kering’s chief executive, Luca De Meo, had pledged that Gucci would return to full-year growth in 2025, fueled by fresh designs from fashion director Demna now arriving in stores.
While the latest figures represent a notable turnaround from the previous quarter’s 8% decline, Gucci has now recorded falling sales for 12 consecutive quarters. The brand was once the primary profit driver for Kering but has struggled to reignite growth after years of softening consumer interest.
In the United States — currently the strongest-performing market in the global luxury sector, buoyed by new wealth generated by the technology industry boom — Gucci’s sales climbed 9% during the quarter. Kering’s finance chief, Armelle Poulou, noted that this growth rate was faster than what the brand saw in the first three months of the year.
Looking at Kering as a whole, the group’s overall sales increased 2% in the quarter after adjusting for currency fluctuations, edging past analyst expectations of 1.7% growth. Despite the encouraging quarterly results, Kering’s stock has still lost about 17% of its value so far this year.
