Kering Stock Jumps Over 11% as Gucci Turnaround Fuels Return to Growth

Kering SA (PRTP.PA) stock surged 11.6% to €279.6 in Wednesday trading after the luxury group reported first-half 2026 results that signaled a potential turnaround, ending a long streak of declining sales and showing significant recovery at its core Gucci brand.

Results Signal Inflection Point

In results released after Tuesday's market close, Kering announced that its group revenue rose 1% on a comparable basis in the first half to €7.22 billion. The figure marks a pivotal moment for the company, ending 12 consecutive quarters of comparable sales declines. Second-quarter revenue of €3.65 billion also edged past analyst consensus estimates.

The key driver was a marked improvement at Gucci, where the comparable sales decline narrowed to the low single digits in the second quarter. This represented a roughly 7-percentage-point sequential improvement from the first quarter, supported by a 9% jump in U.S. sales as new handbag collections gained traction. Kering also reported an expansion in its operating margin to 12.8%, up 40 basis points year-over-year, and a €4.7 billion reduction in net financial debt since the end of 2025.

Analysts Upgrade Stock on Recovery Hopes

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The positive earnings report prompted a wave of analyst upgrades, amplifying buying pressure on the stock. Key rating changes included:

• HSBC: Upgraded Kering to Buy from Hold, raising its price target to €340. The bank cited management's reaffirmed full-year outlook and the potential sales boost from the Gucci Primavera collection, which arrived in stores in mid-July.
• Barclays: Upgraded the stock to Equal Weight from Underweight with a new €300 price target, noting increased conviction that the company's turnaround is on track.

Luxury Sector in Focus

Kering's performance made it the top gainer on the CAC 40 index, which was otherwise flat as investors digested a heavy slate of corporate earnings. The luxury sector was already on solid footing after peer LVMH reported accelerating revenue growth for the second quarter earlier in the week, setting a constructive tone. With Hermès also reporting half-year results on Wednesday, investors received a broad-based update on the health of the high-end consumer.