Kering, the French luxury conglomerate known for owning Gucci, reported a slight increase in revenue for the quarter ending in June as it continues efforts to rejuvenate its brand portfolio. The company’s revenue reached €3.65 billion ($4.15 billion), marking a 1% rise compared to the same period last year in reported terms, and a 2% increase when excluding currency fluctuations and portfolio changes. This performance slightly exceeded analyst expectations, which had forecast €3.63 billion.

Gucci, Kering’s flagship brand, recorded sales of €1.41 billion during the quarter, representing a 3% decline in reported terms from the previous year. Despite the drop, Kering highlighted that Gucci’s new collections have been gaining momentum in the market. Sales at Gucci’s directly operated stores also remained negative, decreasing by 2% on a like-for-like basis, though this represented a notable improvement of seven percentage points compared to the previous quarter.

The results reflect Kering’s ongoing strategy to strengthen its luxury offerings and adapt to shifting consumer preferences amid a challenging global retail environment. The group’s ability to slightly surpass revenue expectations suggests cautious optimism as it works to enhance the appeal of its marquee brands, particularly Gucci, which has faced recent sales pressures.