Kering, parent of Gucci and Balenciaga, has reported a sequential improvement in its revenue during the first quarter, as the company’s turnaround gained traction.

Revenue for the quarter ended March 31 was €3.568 billion (US$4.2 billion), down 6 per cent year-on-year on a reported basis, but flat on a comparable basis.

The fashion and leather goods segment saw sales down 9 per cent as reported and 3 per cent on a comparable basis. Saint Laurent, Bottega Veneta, Balenciaga and Brioni delivered year‑on‑year growth in the quarter, notably led by North America. 

At Gucci, revenue was down 14 per cent on a reported basis and 8 per cent on a comparable basis. A strong 8 per cent uplift in North America was more than offset by declining trends in Apac and Western Europe.

Kering Jewelry sales were up 14 per cent as reported and 22 per cent on a comparable basis, thanks to strong performance across key regions, with standout demand in Japan and Apac.

Kering Eyewear sales increased 3 per cent as reported and 7 per cent on a comparable basis.

Luca de Meo, CEO of Kering, said the stabilising revenue marked an important first step in the group’s recovery.

“Nearly all our Houses delivered growth during the quarter, with a particularly strong contribution from jewellery.

“Gucci remains our top priority,” de Meo continued. “A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer.”

The luxury group noted that the conflict in the Middle East has remained an area of “heightened attention”. The region has approximately 1100 employees, 79 stores and represents around 5 per cent of total retail revenue. 

In the first quarter, retail revenue in the region declined by 11 per cent, following growth over the first two months.

While some areas experienced temporary disruptions, the total retail network is operational today, the company said.