Kering shares fall 12% as Gucci sales drop 6% in third quarter
Gucci's comparable sales fell 6% to €1.29 billion, sending Kering shares down about 12% on Friday even though group revenue of €3.35 billion was in line with forecasts.
At a glance
- Kering's third-quarter revenue was €3.35 billion, flat as reported and down 1% on a comparable basis, roughly in line with forecasts.
- Gucci, the group's biggest brand, saw comparable sales fall 6% to €1.29 billion, worse than the decline of about 3% analysts expected; its own-store sales fell 9%.
- Kering shares fell about 12% in Paris on Friday, October 23, to their lowest level in well over a year.
- Saint Laurent, Bottega Veneta, jewellery (+11%) and eyewear (+4%) grew, while Asia-Pacific sales fell 8% on weak shopper traffic in mainland China.
- CEO Luca de Meo kept his turnaround plan and raised the 2026 store-closure target to at least 125 from 100.
Shares in Kering, the French owner of Gucci, Saint Laurent and Bottega Veneta, fell about 12% in Paris on Friday, October 23, 2026, after Gucci's sales dropped 6% on a comparable basis in the third quarter. The group's overall revenue of €3.35 billion was in line with forecasts, but investors had hoped for clearer signs that its biggest brand was turning around under chief executive Luca de Meo.
Kering's third-quarter results in numbers
Kering reported its July–September figures after markets closed on Thursday. Revenue was flat on a reported basis and down 1% on a comparable basis, which strips out currency moves and changes in the group's structure. Analysts had expected about €3.34 billion.
| Business | Q3 2026 revenue | Comparable change |
|---|---|---|
| Kering group | €3.35 billion | -1% |
| Fashion and leather goods | €2.74 billion | -3% |
| Gucci | €1.29 billion | -6% |
| Kering Jewelry | €239 million | +11% |
| Kering Eyewear | €373 million | +4% |
Gucci's sales in its own stores fell 9%. The fall was offset only partly by wholesale, which rose 45% from a low base. Analysts had forecast a decline of around 3% for the brand. Outside Gucci, sales in the group's own stores grew 2%, helped by Saint Laurent, Bottega Veneta and Brioni, while Balenciaga's clothing and shoes remained weak.
For the first nine months of the year, revenue was €10.57 billion, down 2% as reported and stable on a comparable basis.
Sales by region (own stores, comparable)
| Region | Change |
|---|---|
| Western Europe | Flat |
| North America | +1% |
| Japan | +4% |
| Asia-Pacific | -8% |
| Rest of the world | -5% |
The company said the biggest problem was fewer shoppers walking into stores, especially in mainland China. South Korea kept growing, and the Middle East returned to growth.
Background: a long turnaround
Gucci was once the engine of Kering's profits, but its sales have shrunk for more than two years as its designs fell out of favour and Chinese demand for luxury goods weakened. Luca de Meo, the former Renault boss, took over as chief executive in 2025 with a plan to cut costs, close weaker stores, reduce debt and rebuild the desirability of the group's brands.
Designer Demna, who moved from Balenciaga, is now in charge of Gucci's collections; his first full collection arrived in stores in mid-July. Kering has also trimmed prices on some older seasonal items to clear stock, but says it is not repositioning the brand's overall prices.
The group had 1,614 directly operated stores at the end of September after a net 105 closures this year. It now plans at least 125 net closures in 2026, up from 100, and aims to cut fashion and leather goods inventory by about €1 billion by the end of the year.
Before Friday's fall, Kering shares were already down 29% this year.
What Kering's management and analysts said
De Meo said the quarter "reflects the phasing we anticipated" in a softer economy and called Gucci's recovery the company's "defining priority".
Chief financial officer Armelle Poulou said traffic "remains a main constraint across the group" and that the recovery at Gucci would be gradual. She said October trading was broadly in line with the third quarter in most regions.
Analysts at JPMorgan said in a note that progress on improving the brand's appeal was still at a very early stage. An investment manager at Aviva Investors said luxury labels may need to lower their entry prices further to win back middle-class shoppers.
Why it matters
Kering's slide adds to a difficult season for luxury. Hermès this week reported its weakest quarterly growth since 2020, and shares in LVMH and Hermès also fell on Friday. The industry is dealing with weak spending in China, higher oil prices linked to the Middle East war, and squeezed household budgets in Europe and the United States.
For shoppers, the slowdown means more discounting of older stock and fewer stores. For the wider economy, luxury groups are among Europe's largest listed companies, so their weakness weighs on stock markets in Paris and Milan. Luxury brands also rely heavily on Gulf and South Asian tourists and wealthy buyers, and the Middle East's return to growth was one of the few bright spots in Kering's results.
What happens next
Kering said it still expects its recurring operating margin for 2026 to improve compared with 2025, and that operating costs will be lower than last year. But the finance chief said the second-half margin will not be better than the first half's, given the tough market.
The next key test is the Christmas season, when investors will watch whether Demna's new Gucci collections bring shoppers back. Kering will publish full-year 2026 results in February 2027. A new creative director is also starting at Saint Laurent, and a new designer is joining McQueen.
Questions people are asking
Why did Kering shares fall today?
Kering shares dropped about 12% on October 23, 2026 because Gucci's third-quarter comparable sales fell 6%, a bigger drop than investors expected, showing the brand's recovery is still slow.
How much did Gucci sell in the third quarter of 2026?
Gucci's revenue was €1.29 billion in July–September 2026, down 4% as reported and 6% on a comparable basis. Sales in its own stores fell 9%, while wholesale rose 45% from a low base.
Is Kering closing Gucci stores?
Kering has closed a net 105 stores across its brands so far in 2026 and now plans at least 125 net closures for the full year, up from an earlier target of 100, as part of CEO Luca de Meo's turnaround plan.
