French luxury conglomerate Kering (KER.FR) released its first-quarter 2026 results, which disappointed investors and analysts. The group’s revenue totaled €3.57 billion, marking a 6.2% year-over-year decline on a reported basis, with zero growth on a comparable basis. Kering shares plunged by more than 10% on the Paris Stock Exchange, joining a wave of sell-offs across the European luxury sector.
Gucci—the group’s flagship brand—continues to be the main drag on results, with revenue falling 14.3% to €1.35 billion, and 8% on an organic basis, compared to an analyst consensus forecast of a 4.3% decline. Berenberg explicitly noted that Gucci’s Chinese customers are still down by more than a dozen percentage points from previous years, and the brand’s recovery in this key luxury market remains very slow. The only bright spot geographically was North America, which recorded high single-digit growth. Source: Kering Investor Relations
Jewelry and eyewear were the standout performers in the overall report. Kering Jewelry achieved record quarterly revenue of €269 million (+22% on a like-for-like basis), while Kering Eyewear reported its highest-ever result—€489 million (+7% on a like-for-like basis). Brands such as Saint Laurent, Bottega Veneta, Balenciaga, and Brioni also saw growth, particularly driven by demand in North America. Source: Kering Investor Relations
Another factor weighing on results was the conflict in the Middle East, which has significantly disrupted tourism and consumer spending in the region since late February. Kering’s retail sales in the Middle East fell by 11% during the quarter, and CFO Armelle Poulou estimated the conflict’s negative impact at approximately 1 percentage point of comparable growth for the entire quarter. The company emphasized that the Middle East accounts for approximately 5% of its retail revenue and is closely monitoring further developments.
New CEO Luca de Meo announced that “Gucci’s turnaround is underway” and will present a full strategic plan during the Capital Markets Day in Florence this Thursday. Citi analysts described the Q1 results as “secondary” to the anticipated “ReconKering” roadshow, while Barclays noted that the brand’s strategic reset is beginning to show initial results in North America. The market is now waiting for concrete signs that the long-awaited turnaround at Gucci—and across the entire group—is a matter of months, not years.
Kering shares remain in a clear downtrend on the daily chart: the price of 251.60 is significantly below the EMA(100) = 270.30 and the EMA(200) = 266.25, confirming that selling pressure is dominant. The last session saw a range of 250.60–265.15, with an opening at 263.80 and a close near the lows, indicating persistent selling pressure. The nearest support is seen in the 250–252 zone (local low of 250.60); a break below this opens the way toward the next round numbers of 240/220 visible on the chart. On the resistance side, the key level is the EMA(200)/EMA(100) convergence in the 266–270 range; a breakout and sustained move above this zone would signal improved sentiment and the potential for a correction toward 300. Until these moving averages are regained, the base scenario remains a downtrend, and any rebounds can be treated as corrective moves.
Source: xStation
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