Kering reported second-quarter revenue of €3.65 billion, up 1% reported and 2% at constant currency, as stronger U.S. demand for new Gucci handbags helped its flagship brand outperform estimates.
Gucci’s sales fell 2% from a year earlier in the second quarter to €1.4 billion, beating Visible Alpha estimates of €1.37 billion and marking an improvement from the previous quarter’s 8% decline. Kering said stronger demand for new handbags in the United States helped offset weaker spending elsewhere, with Gucci sales in the U.S. rising 9%. At the group level, Kering reported quarterly revenue of €3.65 billion, ahead of the €3.63 billion expected by analysts, with sales up 1% in reported terms and 2% at constant currency. The results offer some support for Kering’s efforts to revive growth at Gucci under CEO Luca De Meo, who has said the brand would return to full-year growth this year as new styles from designer Demna reach stores.