Key facts
- Hermes reported a 7% rise in second-quarter sales.
- Gucci's second-quarter sales decline slowed to 2%, beating analyst expectations.
- Kering's overall sales grew 2% on a currency-adjusted basis.
- Gucci's U.S. sales increased by 9% in the quarter.
- Kering shares were expected to rise 10% following the results.
Kering's shares were expected to jump 10% after its flagship brand Gucci reported a second-quarter sales decline that slowed to 2%, surpassing market expectations and offering hope for the company's turnaround efforts. Gucci's revenue for the quarter was €1.4 billion ($1.6 billion), an improvement from the previous quarter's 8% drop and better than the 4% decline analysts had forecast. Strong U.S. demand for new handbags contributed to Gucci's 9% sales increase in the region. Overall, Kering's sales grew 2% on a currency-adjusted basis, exceeding expectations of 1.7% growth.
Meanwhile, Hermes reported a 7% rise in second-quarter sales, reaching €4.1 billion ($4.67 billion), a slight acceleration from the previous quarter and outperforming rivals like LVMH, which saw disappointing results. The positive performance from both Kering and Hermes suggests a potential stabilization in the luxury market after a prolonged downturn.