Kering (PPXB) Q2 2026 Earnings Report
DE:PPXB Q2 2026 EPS Results
- Actual EPS
- EUR 0.11
- Consensus EPS
- EUR 0.32
- Beat/Miss
- Missed by -EUR 0.20
- One Year Ago EPS
- EUR 0.40
DE:PPXB Q2 2026 Revenue Results
- Actual Revenue
- EUR 7.51B
- Expected Revenue
- EUR 3.70B
- Beat/Miss
- Beat by +EUR 3.81B
- YoY Revenue Growth
- +1.64%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 07/28/2026
- Time
- During Market Hours
- Conference Call
- Tuesday, July 28, 2026
Kering's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
The call was constructive: management reported tangible progress from their ReconKering actions — return to Q2 growth, margin expansion, strong free cash flow and a large reduction in net debt. High‑quality growth engines (Jewelry and Eyewear) performed exceptionally and operational discipline (OpEx reductions, inventory improvements, store optimization) is taking hold. However, notable challenges remain: FX drag, ongoing weakness in Mainland China, non‑recurring charges and transitional issues at specific houses (Gucci still down in H1 despite sequential improvement; Balenciaga and McQueen undergoing transitions). Overall the positives (cash, margins, tangible operational wins and strong category performance) outweigh the negatives, while management remains cautiously realistic about short‑term volatility.
Management reiterated 2026 guidance of "growth and improved profitability versus 2025," confirming H2 recurring operating margin should be higher than H1’s 12.8% (H1 recurring operating income €921m), and flagged several quantified priorities: at least 100 net store closures in 2026 (part of a 250‑store plan to 2028), a €1.0bn reduction target for Fashion & Leather Goods inventory by year‑end, and a full‑year OpEx decline (H1 OpEx -5%). Capital allocation will prioritize deleveraging and investment in the houses (net financial debt €3.3bn at 30 June; net debt/adjusted EBITDA 1.4x), selective bolt‑on M&A, and dividends (€490m paid H1; no share buyback planned), with tax rate expected to normalize to ~27–28% over 2–3 years and continued strong cash generation (H1 free cash flow €2.6bn; €1.8bn excl. real estate/Gucci Beauté proceeds, +68% YoY) to support the plan.
- Return to Growth in Q2Group revenue for H1 was €7.2bn (up 1% on a comparable basis). After a stable Q1, comparable growth accelerated to +2% in Q2 — the first quarter of growth in 12 quarters — achieved while executing store optimization (84 net closures in H1).
- Improved Profitability and Margin ExpansionRecurring operating income reached €921m with a 12.8% margin, up 40 basis points year‑on‑year and up 300 basis points versus H2 2025, driven by better commercial momentum and structural cost discipline.
- Very Strong Free Cash Flow and Material Debt ReductionFree cash flow from operations was €2.6bn (including ~€800m from real estate net proceeds and the Gucci Beauté agreement). Excluding those proceeds FCF was €1.8bn, up 68% versus H1 2025. Net financial debt was €3.3bn at June 30, down €4.7bn from year‑end 2025; net debt to adjusted recurring EBITDA ~1.4x.
- Operational Discipline: OpEx and Inventory ProgressGroup operating expenses fell 5% to €4.2bn (driven largely by fixed cost reductions) while A&P was maintained at ~9% of revenue. Change in operating working capital improved by €62m in the period, a year‑on‑year improvement of €863m, and management remains on track to meet a €1bn inventory reduction target for Fashion & Leather Goods by year‑end.
- Kering Jewelry: Strong Growth EngineKering Jewelry revenue reached €521m in H1, up 20% comparable; Q2 was €252m up 18% comparable. Boucheron and Pomellato performed very strongly. Segment recurring operating income was €32m (6.2% margin, up 270 bps YoY).
- Kering Eyewear: Consistent Growth and ProfitabilityKering Eyewear delivered H1 revenue of €965m, up 8% comparable; Q2 also +8% comparable. Recurring operating income was €222m, representing a 23% margin (up ~290 bps YoY), supported by successful product initiatives and brand debuts.
- Gucci Sequential Improvement and Leather Goods RecoveryGucci H1 sales were €2.8bn (down 5% comparable), but Q2 improved to €1.4bn (down 2%), a c.6‑point sequential improvement versus Q1. Retail trends improved (Luca noted a 7‑point retail improvement in Q2) and leather goods returned to growth with successful launches (e.g., Borsetto, Paparazzo). Gucci recurring operating income was €468m (17% margin, +1 pt vs H1 2025).
- Retail Productivity and Network OptimizationGroup ended June with 3,005 stores (down 84 since year‑end) and remains on track to deliver at least 100 net closures in 2026. Management emphasized focus on fewer, higher‑quality locations, store refurbishments and increasing sales density.
- Confirmed 2026 GuidanceManagement reiterated guidance of growth and improved profitability for 2026 vs 2025, signaling confidence in the trajectory created by recent operational actions.
DE:PPXB Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 0.35- | 0.13 | ― | ― |
| Jul 28, 2026 | 2026 (Q2) | 0.320.11 | 0.4 | -71.56% (-0.28) | |
| Feb 10, 2026 | 2025 (Q4) | 0.250.13 | 0.19 | -31.63% (-0.06) | |
| Jul 29, 2025 | 2025 (Q2) | 0.350.40 | 0.69 | -42.69% (-0.29) | |
| Feb 11, 2025 | 2024 (Q4) | 0.240.19 | 1 | -80.89% (-0.81) | |
| Jul 24, 2024 | 2024 (Q2) | 0.730.69 | 0.71 | -2.89% (-0.02) | |
| Feb 08, 2024 | 2023 (Q4) | 1.061.00 | 1.37 | -27.00% (-0.37) | |
| Jul 27, 2023 | 2023 (Q2) | 1.430.71 | 1.45 | -50.99% (-0.74) | |
| Feb 15, 2023 | 2022 (Q4) | 1.541.37 | 1.54 | -10.46% (-0.16) | |
| Jul 27, 2022 | 2022 (Q2) | 1.331.45 | 1.25 | 16.25% (+0.20) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.