中文title: “Kering’s Leather Empire Holds at €5.8 Billion as Gucci’s Turnaround Gathers Pace” seo_description: “Kering’s Fashion & Leather Goods division posted €5.8 billion in H1 2026 as Gucci’s decline slows and Bottega Veneta outperforms. Read the full analysis now.” seo_tags: [“Kering”, “Gucci”, “Fashion and Leather Goods”, “luxury earnings”, “Bottega Veneta”, “Saint Laurent”, “H1 2026”] seo_slug: “kering-leather-goods-revenue-gucci-turnaround-h1-2026” source: “https://leathernews.org” original_url: “https://leathernews.org/kering-fashion-and-leather-goods-revenue-reaches-e5-8-billion-as-gucci-sales-continue-to-decline-in-h1-2026/”
Kering’s Leather Empire Holds at €5.8 Billion as Gucci’s Turnaround Gathers Pace
When a luxury group’s single biggest brand is shrinking, investors tend to panic. Yet Kering’s first-half results for 2026 tell a more complicated — and quietly reassuring — story about the resilience of leather goods at the heart of the world’s second-largest luxury house.
The French group reported €7.22 billion in revenue for the first six months of 2026, down 3% as reported but actually up 1% on a comparable basis against the same period last year. Recurring operating income came in at €921 million, with the recurring operating margin improving to 12.8% from 12.4% a year earlier. Net income attributable to the group totalled €189 million, while free cash flow from operations reached a healthy €2.6 billion. Most tellingly, Kering slashed its net debt to €3.3 billion from €8.0 billion at the end of 2025, buttressed by a cash position of €8.5 billion. That balance sheet repair is the kind of move that buys a management team the time it needs to fix what is broken.
The Leather Engine Still Humming
Strip the group down to its Fashion & Leather Goods division and the picture sharpens. That segment generated €5.8 billion in revenue in H1 2026, down 5% as reported and 1% on a comparable basis, as improving performance at several houses helped cushion the continued weakness at Gucci. In the second quarter alone the division recorded €2.95 billion, down 1% as reported but flat on a comparable basis — a clear sequential improvement over the first quarter. Recurring operating income for the segment reached €828 million, and the recurring operating margin climbed to 14.3%, up 0.7 percentage points year on year.
In other words, even as the headline brand struggled, the leather-and-fashion core held its profitability — a reminder that Kering’s problem is brand-specific, not structural.
Gucci: The Slow Climb Back
Gucci remains the centre of gravity and the centre of concern. It generated €2.76 billion in H1 revenue, down 9% as reported and 5% on a comparable basis. But the brand showed genuine signs of stabilisation in Q2, with revenue of €1.41 billion representing a 3% reported decline and 2% comparable decline — its strongest sequential improvement in several quarters. The language from management suggests the worst of the destocking and repositioning may be behind it, even if a full recovery is still some quarters away.
Strength Elsewhere
Crucially, Kering is not a one-brand company, and that diversification is doing the heavy lifting. Saint Laurent returned to growth in H1 2026, fuelled by strong demand in North America and Western Europe as new collections gained momentum. Bottega Veneta continued to outperform, with every region recording sequential improvement and its leather goods category a particular source of strength. Balenciaga is still mid-creative-transition, though Kering noted leather goods remained a bright spot, and Brioni delivered another strong quarter.
Across the segment, sales through directly operated stores declined 2% on a comparable basis while wholesale and other revenue rose 2%. Kering also continued pruning its retail footprint, completing 84 net store closures in the first half as part of a plan to shut roughly 100 outlets during the year — a disciplined retreat from unprofitable corners.
What It Means
The stance here is measured but optimistic. Kering’s results prove that a troubled flagship does not have to drag the whole leather machine under, provided the other houses are firing and the balance sheet is being cleaned up. The group says it remains focused on returning to growth and improving profitability despite geopolitical and macroeconomic uncertainty, supporting each house through sharper brand strategies, operational discipline and agile execution. For the leather supply chain — tanners, finishing houses and component makers — Kering’s stabilisation matters: Bottega’s momentum and Gucci’s slow recovery both translate into steady, premium-grade demand. The empire is not expanding just yet. But it is, at last, holding the line.
Source: Leather News
