Kering (KER) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached €7,220 million, up 1% on a comparable basis, with Q2 marking a return to growth after 12 quarters of decline and sequential improvement at Gucci retail (+7pts).

• Recurring operating income was stable at €921 million, with margin improvement to 12.8%.

• Net income attributable to the Group fell 60% to €189 million, impacted by non-recurring items and a higher effective tax rate.

• Major strategic moves included the Kering Beauté divestment, new segment reporting, leadership changes, and continued store network optimization.

• Early signs of progress in brand desirability, commercial momentum, and operating performance, despite a demanding market environment.

Financial highlights

• H1 2026 revenue: €7.2 billion, up 1% comparable, down 3% reported due to currency effects; Q2 revenue: €3,652 million, up 2% comparable.

• Recurring operating income: €921 million (margin 12.8%, up 40 bps YoY); recurring EBITDA: €1,935 million (-1% YoY, margin 26.8%).

• Free cash flow from operations: €2.6 billion (including real estate and Gucci Beauty proceeds); €1.8 billion excluding these, up 68% YoY.

• Net financial debt: €3.3 billion at June 30, down €4.7 billion from year-end 2025; cash and cash equivalents: €8.5 billion.

• Basic EPS: €1.54, down 60% YoY; adjusted EPS from continuing operations: €2.89, down 12%.

Outlook and guidance

• Guidance confirmed for growth and improved profitability in 2026 versus 2025, with focus on flawless execution, agility, and sustainable brand strategies.

• Q3 expected to be flattish due to a more demanding comparison base and macro volatility; stronger product newness expected in Q4.

• H2 margin expected to be higher than H1 margin.