Kering, the owner of Gucci and other upscale brands, is scheduled to report results on Tuesday. Here is what you need to know.

SALES FORECAST: The French luxury-goods company is expected to report revenue of 3.63 billion euros for the second quarter ($4.13 billion), according to estimates by 12 analysts compiled by Visible Alpha. In the year-earlier period, the group booked sales of 3.70 billion euros.

NET PROFIT FORECAST: For the first half, analysts forecast net profit of 399 million euros, down from 474 million euros during the same months of 2025.

Shares have jumped 11% over past 12 months, but are down around 18% since the start of the year.

WHAT TO WATCH

--The company is hoping for a turning point for Gucci after years of falling demand for the group's flagship brand. However, analysts at Deutsche Bank see a return to sales growth in 2026 as less likely for the brand. They also see a limited sequential improvement in the U.S. In China, there is still much work to be done to restore interest in the brand, they added.

--Investors will also be watching for any comments regarding the expected negative impact of the war in the Middle East on the group's sales, Deutsche Bank said. The war is hitting sales in countries directly affected by the conflict but also in Europe due to lower tourist flows.

--The company targets a return to growth and an improvement in margins this year. The focus will be on any changes regarding the group's outlook and the ambition for Gucci, Deutsche Bank said. The weaker-than-expected sales recovery so far has also weighed on margin expectations for the first half, they said. The analysts don't expect sequential improvement compared to the second half of 2025 despite cost-cutting efforts, they said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 27, 2026 09:54 ET (13:54 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.