Shares in Kering dropped as much as 10.2 percent in morning trading on the Paris bourse after the French luxury group reported lackluster first-quarter results and indicated a turnaround at Gucci will be gradual.

Europe’s big luxury players are facing multiple headwinds, including the Middle East conflict and a volatile economy, and have yet to confirm the rebound equity analysts are expecting in 2026.

Revenues at Gucci dropped 14.3 percent in the first quarter to 1.35 billion euros, or 8 percent in organic terms, as reported, while overall Kering revenues decreased 6.2 percent to 3.57 billion euros. Revenues were flat in organic terms, with jewelry and eyewear among the rare standouts at the parent of brands including Saint Laurent, Balenciaga and Bottega Veneta.

Equity analysts are banking on Kering’s Capital Markets Day, scheduled for Thursday in Florence, to get a clearer picture of turnaround efforts led by new chief executive officer Luca de Meo, who is to unveil his strategic roadmap.

Thomas Chauvet, analyst at Citi, called Kering’s first-quarter numbers “secondary” to de Meo’s “ReconKering” road show.

Shares in the French group have so far been supported by “improved sales momentum in 2H25/1Q26, senior leadership changes, expectations of a successful Gucci turnaround under Demna’s creative direction, and continued cost discipline… alongside easing financial leverage,” Chauvet wrote in a research note Tuesday.

Shares in Hermès International were down about 9 percent in morning trading after the company reported soft first-quarter sales on Wednesday, with most categories coming in below expectations.

Shares in LVMH Moët Hennessy Louis Vuitton, which eked out organic growth of 1 percent in the first three months of the year, were stable around 11 a.m. CET on Wednesday, April 15.

Compagnie Financière Richemont, which is scheduled to report annual results on May 22, eased 1.4 percent.