Kering shares surged more than 12% after the group reported quarterly sales and recurring operating profit that exceeded analyst expectations. Gucci, Kering’s flagship brand, posted second‑quarter revenue that fell 2% on an organic basis – marking its 12th consecutive quarterly decline – yet the result beat forecasts and represented a notable improvement over the prior quarter. In response, HSBC analysts upgraded Kering to a Buy rating from Hold, highlighting CEO Luca de Meo’s focus on key priorities and efforts to reconnect with aspirational consumers, particularly at Gucci.
Conversely, Hermes shares dropped nearly 9% following its quarterly update, which raised investor doubts about the group’s growth outlook. Second‑quarter sales of handbags, silk scarves and perfume rose 6.7% in currency‑adjusted terms to €4.1 billion, in line with expectations and up from 6% growth in the first quarter. JPMorgan noted that Hermes’ growth is accelerating less sharply than its peers, and although profitability improved modestly, the slower pace continues to generate “question marks” about the company’s short‑, medium‑ and long‑term trajectory.
The mixed performance came after muted results from industry bellwether LVMH on Monday, where LVMH shares edged up around 1%. Moncler shares rose 2.7%, while Richemont fell 1%.