Kering’s H1 Jewelry Sales Up 14%

New York—Kering’s sales slipped in the first half of the year as it faced geopolitical strife and the downsizing of its store network, but a recovery is underway as it continues with its turnaround plan.

Its jewelry brands, which include Boucheron, Pomellato, DoDo, and Qeelin, posted double-digit growth while star brand Gucci continued its recovery.

First-half revenue totaled €7.22 billion ($8.23 billion), down 3 percent (up 1 percent on a comparable basis).

Q2 revenue totaled €3.65 billion ($4.16 billion), up 1 percent (2 percent on a comparable basis).

“Kering delivered improved performance in the second quarter, with revenue returning to growth. Across the group, we are seeing early signs of progress in brand desirability, commercial momentum, and operating performance,” said Kering CEO Luca de Meo in a statement.

“The quarter also showed sequential acceleration, including at Gucci, driven by the actions taken over recent months.”

Kering’s new roadmap to growth, dubbed “ReconKering,” included changes to its organization and new brand strategies as well as financial discipline measures.

The luxury titan is continuing to optimize its store network, closing net 75 stores in 2025 and 84 stores so far this year, reducing its directly-operated store footprint by 5 percent.

Kering plans to close 100 stores total in fiscal year 2026. The retailer operated 1,635 stores as of the end of Q2.

“These first-half results demonstrate the positive impact of the decisive measures we have taken to reinforce the distinctiveness of our brands, simplify our organization, and increase effectiveness across the group,” said de Meo.

Gucci, which has weighed on Kering’s balance sheet in recent quarters, gained traction through its new collections, with the North America region as a key growth driver.

Sales were down 9 percent (5 percent on a comparable basis) in the first half and down 3 percent in Q2 (2 percent on a comparable basis).

In contrast, its jewelry brands have been a continuous bright spot in its earnings report.

First-half sales soared 14 percent (20 on a comparable basis) to €521 million ($594 million), while Q2 sales were up 15 percent (18 on a comparable basis) to €252 million ($287 million).

In its directly operated stores, first-half jewelry sales were up 28 percent while wholesale revenue was up 4 percent. In Q2, these sales were up 28 percent and 2 percent, respectively.

Previously, these brands fell into Kering’s “Other Houses” division alongside Alexander McQueen and Balenciaga, but they are now in their own category.

In March, Kering announced the creation of Kering Jewelry, a new division established to accelerate the growth of its jewelry brands.

Jean-Marc Duplaix, who is also Kering’s chief operating officer, was named CEO of Kering Jewelry.

The jewelry category did well across key regions, with strong momentum in North America, Japan, and Asia Pacific.

Boucheron sales reached new record levels, said Kering, with strong growth in Japan and Asia Pacific.

The launch of its new “Quatre XS” variation of its signature “Quatre” collection performed especially well. It also introduced its “Human Being” high jewelry collection.

The brand named Colman Domingo as an ambassador earlier this year.

Pomellato also did well, driven by growth in Japan and North America, and the success of its key collections. It recently debuted its “Stile Libero” high jewelry collection.

It was a challenging quarter for DoDo, up against tough comps. Qeelin saw softening trends in Q2, but growth was strong, with a solid performance in Asia Pacific.

Kering announced late last year that it had signed an agreement to acquire an initial 20 percent stake in Raselli Franco Group, one of the largest independent jewelry manufacturers in Europe, with a pathway to full ownership of the company by 2032.

Looking at its overall performance, revenue from Kering’s directly operated stores, which includes its e-commerce sites, was flat in the first half with revenue from wholesale up 5 percent.

In Q2, store sales were up 2 percent with revenue from wholesale up 3 percent.

Looking at its performance by region, North America saw the strongest growth in H1 and Q2, up 10 percent in both segments. Sales were down in all other regions in H1 and Q2.

North America was Kering’s third-largest market by revenue percentage in H1, accounting for 24 percent of total revenue.

Asia Pacific took the top spot (33 percent) followed by Western Europe (25 percent).

Looking to the year ahead, Kering did not provide financial guidance, but plans to continue on its growth strategy roadmap.

“While the market environment remains demanding, we are focused on delivering our roadmap with discipline and consistency, creating the foundations for sustainable growth and long-term value creation,” said de Meo.