On Tuesday, Kering reported first-quarter revenue of €3.57 billion, or roughly $3.9 billion, down 6% on a reported basis and flat on a comparable basis. The numbers point to stabilization at the group level, but the story remains unchanged. Gucci is still the problem, accounting for roughly 38% of Kering’s sales, and the turnaround is not landing fast enough. The contrast with LVMH, which reported earnings on April 13, is sharp. The group reported €19.1 billion ($20.7 billion) in revenue for the same period, up 1% on an organic basis, with CFO Cécile Cabanis pointing to “improved trends across most businesses,” despite similar macro pressures. Gucci sales fell 8% on a comparable basis, missing expectations and dragging the broader fashion and leather goods division down 3%. CFO Armelle Poulou framed the results as early progress rather than a setback on the call. “Stabilization represents an important first milestone and a further sequential improvement,” she said, noting the quarter was delivered “in a challenging and uncertain environment with low visibility and continued pressure on consumer confidence.” Continue reading this article on glossy.co. Sign up for Glossy newsletters to get the latest on the business of beauty, fashion and pop culture.
