French luxury group Kering reported a 2 percent rise in second-quarter revenue on a currency-adjusted basis, slightly ahead of analyst forecasts. Comparable sales at flagship brand Gucci fell 2 percent, also beating expectations. While it marked a twelfth straight quarterly decline, the rate of contraction narrowed from the previous quarter. The results are seen as an early sign that CEO Luca Demeo’s turnaround plan is gaining traction, and Kering shares jumped 11 percent in early trading on the 29th. HSBC analysts upgraded the stock from hold to buy, noting that Gucci is focusing on the right priorities to win back aspirational customers.
Kering SAKering reported Q2 revenue and Gucci comparable sales that beat estimates, and HSBC upgraded the stock, driving shares up 11%.