Kering shares drop 10.7% after Gucci sales miss expectations

Kering shares fell 10.7% during early Paris trading on October 23 after the luxury group's Gucci brand posted a steeper quarterly sales decline than analysts expected. Gucci revenue dropped 6%, compared with forecasts for a 2.8% decrease, as demand weakened in mainland China and Japan.

For the three months through September, group revenue totaled €3.3 billion, a year-over-year organic decline of 1% that broadly met analyst expectations. Kering said retail sales rose 2% across its brands excluding Gucci, which is its largest contributor to revenue and profit.

Chief executive Luca de Meo said Gucci's recovery remained Kering's main priority. The group retained its commitment to improving recurring operating margin in 2026 despite tougher economic conditions, but omitted its earlier objective of restoring revenue growth this year.

De Meo's restructuring involves combining some production operations, refining brand identities and moving some decisions to the group level. Chief financial officer Armelle Poulou said closures of underperforming stores were running ahead of schedule, with 105 locations shut and another 20 scheduled to close this year.

Poulou described mainland China as a major headwind, and Kering also noted weaker demand in North America. Elsewhere in the group, jewelry sales increased 11% and eyewear sales gained 4% during the quarter.