Kering shares rise 17% as Gucci shows recovery, Hermes disappoints investors

By the Editorial Team · Thursday, July 30, 2026

Kering's shares jumped 17% after the company reported a 2% rise in quarterly sales, marking its first growth in three years under CEO Luca de Meo. This rebound contrasts with Hermès, whose shares fell 11% despite a 6.7% sales increase, reflecting investor concerns over its slower-than-expected demand recovery.

Shares of luxury group Kering surged 17% following the release of its latest quarterly results, which showed a modest rebound in sales after three years of decline. The company, which owns Gucci, Balenciaga, and Alexander McQueen, reported a 2% increase in sales to £3.1 billion for the three months ending June 30, signaling early signs of recovery under CEO Luca de Meo, who took over last year.

Gucci, Kering’s largest brand, continued to face challenges but showed a slower rate of decline. Its sales dropped 2% in the quarter, an improvement compared to an 8% decrease in the previous quarter. The company highlighted a positive response to its new handbag offerings in the United States, including the £1,950 Borsetto, which has gained attention after being seen on British model Kate Moss.

In contrast, shares of rival luxury house Hermès fell 11% despite the company reporting a 6.7% increase in second-quarter sales to £3.5 billion. Investors expressed disappointment over what was perceived as a weaker-than-expected recovery in demand. Hermès, known for its iconic Birkin bag retailing at approximately £20,000, has generally demonstrated resilience against ongoing challenges such as softened consumer spending in China and decreased tourism in Europe.

Sales in the Middle East declined 2.4% in the quarter for Hermès, a less severe drop than the 5.9% contraction seen in the first quarter, despite continued geopolitical tensions. Both Kering and Hermès acknowledged that conditions in the Middle East remain difficult. Hermès CEO Axel Dumas noted a rebound in tourist activity in France and some improvement in momentum in Paris, though demand in China had yet to show significant recovery.

Market analysts indicated differing investor sentiment toward the two companies. Angeline Ong, an analyst at trading platform IG, described the reaction to Kering’s results as cautiously optimistic, stating that the company now has tangible signs of progress under de Meo’s leadership. Meanwhile, Hermès investors appeared less encouraged by the latest figures despite the luxury firm’s relatively stronger sales growth.

The divergent market responses underscore the contrasting trajectories of the two luxury groups amid an evolving global economic landscape marked by fluctuating consumer behavior and regional uncertainties.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.