Gucci's Sales Decline Slows to 2% in Q2, Beating Forecasts on U.S. Strength

Sales at Kering's flagship brand Gucci fell by 2% in the second quarter compared to the previous year, a smaller decline than analysts had anticipated. The performance offers a sign of potential stabilization for the fashion house as it undergoes a significant brand overhaul.

Quarterly Performance Details

Gucci's second-quarter sales totaled €1.4 billion ($1.6 billion), outperforming the analyst consensus forecast of a 4% decline to €1.37 billion, according to data from Visible Alpha. The result marks a notable improvement from the 8% sales drop recorded in the first quarter of the year.

Despite the better-than-expected figures, this was the 12th consecutive quarter of declining sales for the brand, which has been working to revive demand after a period of weakening performance. The slowing pace of the decline may reassure investors that Kering's turnaround strategy is beginning to take hold.

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U.S. Market Provides Key Support

A key driver of the performance was the brand's strength in the United States. Kering's finance chief, Armelle Poulou, reported that Gucci sales in the U.S. rose by 9% during the quarter, accelerating from the first three months of the year. This robust demand in a critical luxury market helped to offset weaker spending in other regions.

At the group level, parent company Kering reported that its overall sales increased by 2% in the quarter, adjusted for currency fluctuations. This was slightly ahead of analyst expectations for 1.7% growth. Despite the positive quarter, Kering's shares remain down approximately 17% year-to-date, reflecting investor caution regarding the ongoing Gucci revival.