Key facts
- Gucci's second-quarter sales declined by 2% year-over-year, totaling €1.4 billion.
- This performance exceeded analysts' expectations of a 4% decline.
- Sales in the United States increased by 9% for Gucci.
- Overall Kering sales grew 2% in the quarter on a currency-adjusted basis.
- The improved results offer reassurance for Kering's turnaround strategy.
Sales at Kering's flagship brand Gucci declined by 2% in the second quarter, a smaller drop than anticipated, signaling potential progress in the luxury group's turnaround efforts. The company reported sales of €1.4 billion ($1.6 billion), surpassing analysts' consensus forecast of a 4% decrease.
This performance marks an improvement from the 8% decline seen in the previous quarter, though it represents the 12th consecutive quarterly sales decrease for Gucci, once Kering's primary profit driver. The brand is under pressure to revitalize growth amid years of weakening demand.
Gucci's sales in the United States, a key market for luxury goods, rose by 9% during the quarter, accelerating from the first three months of the year. This growth was attributed to new wealth generated from the tech boom.
Overall, Kering's sales increased by 2% in the quarter when adjusted for currency fluctuations, slightly exceeding analyst expectations of 1.7% growth. Despite these signs of improvement, Kering's shares have fallen approximately 17% year-to-date.