Kering: Things Are Getting Better, But It Is Still Not Enough

Kering has exited its worst phase, with Q1 2026 showing stabilization and early signs of improvement, particularly at Gucci. Gucci's comparable sales decline improved to -8% from -25%, but group recovery remains incomplete as traffic and China demand are still weak. Management's reset plan offers a credible roadmap for inventory, pricing, and margin recovery, but execution risks and near-term P&L pressure persist.