Kering SA manages the development of a collection of renowned houses in fashion, leather goods, and jewelry in the Asia Pacific, Western Europe, North America, Japan, and internationally. The company provides ready-to-wear products, accessories, and beauty products for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides its products under the Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, and Ginori 1735, as well as Kering Eyewear and Kering Beauté brands. Kering SA was formerly known as PPR SA. and changed its name to Kering SA in May 2013. The company was founded in 1963 and is based in Paris, France.
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Europe's Luxury Giants See Green Shoots in China Market
Europe's biggest luxury firms are turning more positive on the crucial Chinese market as a fragile spending recovery takes shape. Chinese household consumption is stabilizing and even rebounding in some categories like high-end cosmetics, according to Bloomberg Intelligence analysts. Earnings estimates point to a pickup in performance, with Gucci-owner Kering expected to return to sales growth in the region including China by the fourth quarter, while Burberry reported a 9% jump in retail sales in Greater China in the most recent quarter. LVMH said China appears to be stabilizing after several quarters of deterioration, and smaller players like Moncler are also well positioned. The spending boost is primarily driven by high-net-worth consumers, with the key debate centering on whether improving sentiment can broaden beyond affluent shoppers.
Coty Posts Wider-Than-Expected Q4 Loss, Prestige Sales Up 1%
Coty Inc. reported a wider-than-expected adjusted loss for the fourth quarter of fiscal 2026, while net revenues rose 1% to $1,269.2 million and beat consensus estimates. The adjusted loss of two cents per share compared with a loss of five cents a year earlier but missed the Zacks Consensus Estimate of a one-cent loss, sending shares down more than 5%. Prestige revenues increased 1% to $771.8 million, representing 61% of total sales, while Consumer Beauty revenues advanced 1% to $497.4 million. Adjusted operating income fell 42% to $39.5 million, and adjusted EBITDA declined 26% to $93.6 million. Coty also agreed with Kering on an early transition of the Gucci Beauty license, receiving $250 million at signing and up to $180 million more by September 30, 2027.
Luxury Sales Plunge in China as Tax Push Hits Wealthy Shoppers
Global luxury brands are facing a deepening sales slump in China as the country's campaign to tax offshore wealth dampens spending by its richest consumers. Sales at the 25 biggest luxury labels in China dropped more than 10% in July, according to three research firms surveyed by Bloomberg, worse than June's slowdown and a sharp reversal from earlier this year. LVMH's Louis Vuitton and Dior, Kering's Gucci, Bottega Veneta and Balenciaga all recorded double-digit sales drops, while Hermes swung from gains to declines and growth for Chanel and Prada decelerated significantly. The slump coincides with China's sweeping efforts to stem capital outflows and reclaim tax revenues, including tighter controls on cross-border stock trading and demands for citizens to pay billions of dollars in levies on offshore assets and investment gains. The clampdown has contributed to erasing last year's 28.3% rally in the MSCI China Index, which is down 8.9% this year, and Hong Kong's Hang Seng Index has also lost steam after strong gains in 2025.
Kering closes at least 217 stores in 18 months, targets 100 net closures for 2026
French luxury group Kering has closed at least 217 stores over the past 18 months, with 84 net closures in the first half of 2026 alone, reducing its total store count to 1,635. The 84 net closures represent a 5% reduction of its directly operated stores as of December 31, 2025, and are part of the 100 targeted closures for the 2026 full year. The store rationalization comes as the company works to improve sales density and recover from a 46% drop in operating income, with revenue of €7.22 billion in the first half of 2026, down 3% on a reported basis but returning to growth in the second quarter. Kering also sold its beauty division to L'Oréal for $4.7 billion and acquired jewelry manufacturer Raselli Farco as part of a broader recovery strategy.
Dow Plunges 1,153 Points After Fed Holds Rates Steady
US stocks closed sharply lower, with the Dow Jones Industrial Average tumbling 1,153 points, or 2.19%, after the Federal Reserve voted to keep its policy rate at 3.50% to 3.75%. Three of the 12 voting members on the FOMC dissented in favor of a quarter-point rate hike. Fed Chair Kevin Warsh said the committee stands ready to act if necessary. AI-related chip stocks extended their decline, and investors awaited earnings from Microsoft and Meta Platforms. Brent crude oil surged nearly 8%, breaking above 90 dollars a barrel, after President Trump signaled a forceful response to Iran. The yield on the 10-year US Treasury note jumped 7 basis points to above 4.67%, while the 30-year yield surged 10 basis points to above 5.2%, its highest level since 2007. Vertiv shares tumbled 17% after revenue missed estimates, while Ford Motor gained 2.1% after raising its full-year profit forecast for the second time. European markets closed slightly lower, with the STOXX 600 index down 0.29%. Luxury goods stocks fell 2.4%, led by Hermes, which dropped 11% on a lack of recovery signs in the China market, while Kering surged nearly 17% after Gucci sales fell less than expected.
European stocks close lower, luxury goods sector drags market sharply
European stock markets closed lower on Wednesday, with the STOXX 600 index falling 0.29% to 645.01 points, snapping a three-day winning streak. The luxury goods sector tumbled 2.4%, the steepest decline among industry groups, after mixed earnings from French luxury companies. Kering shares surged nearly 17% after Gucci sales fell less than expected, while Hermes shares slumped 11% amid no signs of recovery in the Chinese market. The technology sector fell 0.4%, extending losses for a third straight day, pressured by ASM International which dropped 4.8% despite a positive earnings outlook. The energy sector gained 2.2%, tracking Brent crude oil prices which jumped nearly 8% to breach 90 US dollars per barrel, as tensions in the Middle East flared up again. Investors are also watching the Federal Reserve meeting outcome and earnings from US tech giants such as Microsoft and Meta, which will report after the US stock market closes.
European Markets Dip Overall Despite Oil Stock Gains on Middle East Tensions
European markets fell back on the 29th, as surging crude prices driven by renewed large-scale airstrikes in the Middle East boosted oil stocks, while caution ahead of US monetary policy decisions and earnings from major tech firms weighed on the broader market. London's FTSE 100 extended gains, supported by oil stocks, hitting a new intraday high, but the mid-cap FTSE 250 slipped 0.03%. The STOXX Europe 600 fell 0.29%, snapping a three-day winning streak, with luxury brand stocks sold off. Hermès tumbled 11.0%, while Kering surged 16.9%, highlighting a sharp divergence. In eurozone bonds, Germany's 10-year yield rose 4 basis points to 3.148%, its biggest jump in about two weeks, as higher oil prices stoked inflation concerns. In currencies, the euro traded at 1.1382 dollars, and the dollar at 163.84 yen.
L'Oréal reports 6.5% adjusted like-for-like sales growth and record 21.3% operating margin in first half of 2026
L'Oréal posted strong first-half 2026 results with adjusted like-for-like sales growth of 6.5%, significantly outpacing the global beauty market. Sales reached 23.77 billion euros, up 6.8% like-for-like and 5.8% reported, while operating margin hit a record 21.3%, up 20 basis points, even as brand fuel investment rose 70 basis points. Net profit excluding non-recurring items grew 4.7% to 3,959.6 million euros, and all divisions and regions contributed to growth, led by SAPMENA-SSA and a recovering North Asia. The company also announced a 50-year exclusive worldwide beauty licence with Kering for the Gucci brand, effective 1 July 2027.
Kering Shares Surge 15% as Gucci Turnaround Gains Traction
Kering shares soared 15 percent to an intra-day high of 289 euros after the French luxury group's second-quarter results indicated its turnaround plan is gaining traction. The better-than-expected performance of star brand Gucci, which posted a 2 percent organic sales drop, prompted analyst upgrades from HSBC, Bernstein, RBC, and others. HSBC upgraded Kering to buy and raised its target price to 340 euros, while Bernstein lifted its target to 270 euros, citing Gucci's revised pricing strategy and new creative direction under Demna. CEO Luca de Meo noted that Gucci has repositioned some products after prices went too far in certain categories, and leather goods returned to growth in the quarter. By contrast, Hermès International fell more than 12 percent as markets anticipated a normalization in its growth rates.
Luxury brands and automakers signal consumer weakness from China
European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.
Gucci comparable sales beat estimates, signaling progress in Kering turnaround
French luxury group Kering reported a 2 percent rise in second-quarter revenue on a currency-adjusted basis, slightly ahead of analyst forecasts. Comparable sales at flagship brand Gucci fell 2 percent, also beating expectations. While it marked a twelfth straight quarterly decline, the rate of contraction narrowed from the previous quarter. The results are seen as an early sign that CEO Luca Demeo’s turnaround plan is gaining traction, and Kering shares jumped 11 percent in early trading on the 29th. HSBC analysts upgraded the stock from hold to buy, noting that Gucci is focusing on the right priorities to win back aspirational customers.
Jewelry business becomes luxury brand star as fashion sales remain sluggish
The jewelry business is emerging as a key growth driver for the luxury goods industry, as fashion sales continue to slow and Middle East conflicts weigh on consumer purchasing power. Analysts at Vontobel note that jewelry consistently delivers growth and boasts standout margins relative to its business size. Carole Madjo, head of European luxury goods research at Barclays, says consumers are growing tired of high-end fashion that lacks novelty, while the sustained rise in gold prices is drawing more attention to jewelry as an investment asset. This trend is reflected in the results of Richemont, owner of Cartier and Van Cleef & Arpels, whose jewelry sales surged 24 percent in the quarter ending June, far exceeding analyst expectations. Meanwhile, LVMH, owner of Bulgari and Tiffany, is also expected to post stronger performance in its watches and jewelry division. Barclays has raised its growth forecast for LVMH's watches and jewelry business in 2026 to 8 percent from 7 percent, well above the 3 percent growth rate in 2025. This division is LVMH's third-largest business unit, accounting for 13 percent of its total revenue of 81 billion euros in 2025. Kering, owner of Pomellato and Boucheron, disclosed in April that its jewelry sales rose 22 percent in the first quarter year-on-year, the highest growth rate among all its businesses. Madjo adds that even brands with strong fashion and leather goods heritage, such as Hermès, Prada, and Gucci, are placing greater emphasis on jewelry, as it is a category delivering standout growth at this time. The market is watching earnings announcements from major luxury goods makers this week, with LVMH reporting on Monday, July 27, followed by Kering on Tuesday, July 28, and Hermès on Wednesday, July 29.
Japan's Luxury Jewelry Sales Hit Record High as Weak Yen Fuels Demand
Japanese luxury jewelry sales reached a record high in the first half of 2026, driven by domestic consumers seeking stores of value amid a weak yen and rising living costs. Sales of gems, precious metals and artwork at Japan's department stores rose 19% year over year to 330 billion yen, or about $2 billion, the highest for the period since records began in 2008. This growth far outpaced the 3.2% increase in overall department-store sales, while duty-free sales also rose 3.2%, indicating domestic shoppers were the main force. The yen trades near 164 per dollar, its weakest since the 1980s, and core consumer prices excluding fresh food rose 1.6% in June. Tokyo-based jewelry maker Happiness and D has shifted more of its business toward jewelry, with its president noting it is becoming more common for consumers to hold 5% to 10% of their assets in gold rather than cash. Bloomberg Intelligence analyst Catherine Lim observed that Japanese consumers are increasingly choosing branded jewelry over handbags as higher living costs make them more selective. Luxury groups with strong jewelry portfolios are benefiting: Richemont, owner of Cartier, reported a 20% year-over-year sales increase in its latest quarter, with Japan delivering the strongest regional performance led by jewelry, while Kering reported a 57% increase in Japanese jewelry sales during the first quarter even as its fashion and leather-goods business in the country declined 14%.
Prada tops BofA luxury brand ranking in first half of 2026
Prada, Michael Kors, and Alaïa recorded the strongest combined digital brand rankings among soft-luxury names in the second quarter, according to Bank of America's latest Brand Leading Indicator. The indicator ranks 43 soft-luxury brands based on social media followers, online searches, and website traffic, with momentum weighted at 60% and digital presence at 40%. Prada ranked first overall, followed by Michael Kors and Alaïa, while Michael Kors led three-month momentum after Google searches surged from a low base, lifting it from 33rd place in the first quarter. Prada and Alaïa were identified as the strongest brands in the first half of 2026, maintaining consistently high positions across both quarters. Chanel showed the biggest improvement late in the period, climbing from 10th in April to first in June as interest grew around Matthieu Blazy's collection, with Alaïa and Coach ranking second and third for June. Gucci's quarterly momentum ranking improved by 20 places to sixth, supported by stronger US website traffic, online searches, and promotional events, while Saint Laurent rose five positions to 16th, though fellow Kering brand Balenciaga dropped from 13th to 35th. Among LVMH brands, Loro Piana returned to the top 10 at seventh, Louis Vuitton climbed to 10th from 28th, and Dior finished 31st after Chinese search activity weakened. Swatch led hard luxury, helped by online interest surrounding its Royal Pop pocket watch collaboration with Audemars Piguet, with Jaeger-LeCoultre and Tissot placing second and third. Digital engagement across the soft-luxury sector increased 18% year over year, marking a fifth consecutive quarter of acceleration, as Google searches rose 47%, website traffic grew 39%, and Chinese Baidu activity remained down 18%. Excluding unusually strong Google search figures, overall online activity still improved by 7 percentage points from the first quarter, supporting expectations for continued luxury demand recovery led by the US and South Korea.
Kering has appointed Romain Spitzer as Chief Executive Officer of Bottega Veneta, effective September 1, 2026. Reporting to Kering CEO Luca de Meo, Spitzer will be based in Milan and join the Group’s Executive Committee. He brings more than thirty years of international luxury experience, most recently serving as President and CEO of Fragrance Group LVMH Beauty. Spitzer will focus on enhancing the House’s desirability, deepening client connections, and driving retail excellence across markets.
Kering’s Gucci Beauty Deal with L’Oréal Sparks Valuation Debate
Kering has drawn fresh attention after Gucci signed a fifty-year exclusive beauty license with L’Oréal, shifting future fragrance and cosmetics development and distribution to the French beauty group. The deal arrives as Kering’s share price is under pressure, with a year-to-date decline of 19.30% and a three-year total shareholder return down 46.52%, though the one-year total shareholder return of 20.91% highlights volatile recovery efforts. Analysts’ consensus price target is €282.46 per share, implying about 13% upside from the last close of €245.80, but targets range from a bullish €360.00 to a bearish €175.00. In contrast, a Simply Wall St discounted cash flow model estimates a fair value of €237.37, suggesting the stock is slightly overvalued at current levels.
Coty to Receive $400 Million as Gucci Beauty License Ends Early
Coty has agreed to exit its Gucci beauty license one year early, securing a $400 million payment from Kering. The early termination allows L'Oreal to begin selling Gucci beauty products under a 50-year exclusive license starting July 2027, with L'Oreal covering about 70% of Coty's early redemption costs. Kering will also purchase some Gucci beauty inventory separately from the $400 million payment. Coty plans to use the proceeds to reduce debt and invest in its core prestige fragrance and beauty portfolio. The deal comes as Kering continues to review Gucci's fashion operations under new CEO Luca de Meo.
Edelson Lechtzin LLP Investigates Kering Over Unrefunded Tariff Price Hikes
Edelson Lechtzin LLP is investigating potential class action claims against Kering S.A., the owner of luxury brands including Gucci, Yves Saint Laurent, and Balenciaga, over whether it raised retail prices to pass along Trump administration tariffs to consumers and then failed to refund customers after the U.S. Supreme Court struck down those tariffs as unlawful on February 20, 2026. The investigation examines whether Kering kept the higher prices collected from shoppers while also being eligible to recover the same tariff payments from the federal government, a potential double recovery at consumers' expense. Consumers who purchased products from Kering brands such as Gucci, Saint Laurent, Balenciaga, Bottega Veneta, Alexander McQueen, Creed, and Maui Jim during the tariff period may be entitled to a refund. The firm is urging affected consumers to check their receipts and contact the firm to learn about their rights.
CAC 40 Climbs 0.5% On Lower Oil Prices, Soft Inflation Data
French stocks advanced on Tuesday, with the CAC 40 index rising 41.94 points or 0.5% to 8,409.27 by late morning. The gains were supported by lower oil prices, a slowdown in French inflation to 1.8% in June from 2.4% in May, and expectations that the European Central Bank will hold off on rate hikes. ECB Chief Economist Philip Lane noted at the Sintra Forum that second-round effects from higher energy prices may take time to materialize and that policymakers are not committing to a specific rate path. Among individual stocks, Schneider Electric led the advance with a 2.9% gain, while Kering fell 4.5%.
Saks emerges from bankruptcy as Exemplar Luxury Group with leaner store footprint
Luxury retailer Saks Global announced it has exited bankruptcy and will now operate under the new name Exemplar Luxury Group, focusing on its Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman brands. The restructuring eliminated 75% of its previous debt and reduced its store count to 49 locations after closing 62 off-price stores, including 57 Saks OFF 5th and all five Neiman Marcus Last Call stores, as well as 12 Saks Fifth Avenue and three Neiman Marcus locations. The company also ended its partnership with Amazon during the process. Saks had filed for bankruptcy in January with $3.4 billion in debt, including over $337 million owed to suppliers like Chanel and Gucci-owner Kering, and received approval for a $1 billion bankruptcy loan in February. The new board will include representatives from investment firms Pentwater Capital Management and Bracebridge Capital.