Kering shares fell nearly 11% on October 23, 2026, following a third-quarter sales update that showed continued weakness at Gucci. The flagship brand’s revenue declined 6% on a comparable basis, while the luxury group’s overall revenue slipped 1%, highlighting the gap between Gucci’s recovery and growth elsewhere in the portfolio.
Key Takeaways
- Gucci’s directly operated retail sales fell 9% on a comparable basis, with customer traffic remaining the main constraint.
- Growth at other brands helped Kering keep reported quarterly revenue stable at €3.345 billion.
- Kering retained its goal of improving its recurring operating margin in 2026 and increased its planned net store closures.
Table of Contents
- Kering shares retreat as Gucci remains the recovery priority
- Gucci’s retail weakness outweighs wholesale growth
- Portfolio growth and store cuts support the margin goal
- Conclusion
Kering shares retreat as Gucci remains the recovery priority
Kering’s third-quarter 2026 revenue announcement, published on October 22, put Gucci sales at €1.291 billion, down 4% as reported. Comparable sales, which exclude currency and scope effects, fell more sharply.
Gucci accounted for about 39% of group quarterly revenue. Its performance therefore remains a substantial influence on Kering’s overall sales, even as several other businesses expand.
Chief Executive Luca de Meo described Gucci’s recovery as the group’s defining priority and said Kering’s transformation was a multi-season undertaking. The share-price decline followed the update, but the available figures do not establish the size of any shortfall against analyst expectations.
| Item | Details |
|---|---|
| First nine months of 2026 | Group revenue of €10.565 billion; down 2% reported and stable on a comparable basis. |
| Q3 group retail sales | Down 3% on a comparable basis, including e-commerce. |
| Q3 Kering Jewelry | Revenue of €239 million; up 11% on a comparable basis. |
| Q3 Kering Eyewear | Revenue of €373 million; up 4% on a comparable basis. |
Gucci’s retail weakness outweighs wholesale growth
Kering said lower customer traffic remained Gucci’s main constraint. North America was its most resilient market, while weaker traffic weighed on Asia-Pacific, particularly mainland China, and Japan.
Conversion, average price and average transaction value improved as new collections reached stores. Those gains were not enough to offset the pressure on directly operated retail sales, which include e-commerce.
Gucci’s wholesale revenue rose 45% on a comparable basis to €120 million, representing 9% of quarterly sales. Kering attributed that increase to a low comparison base and order-book effects as new collections arrived. The small share of wholesale in Gucci’s business helps explain why strong growth in that channel did not reverse the overall decline.
The company is refining Gucci’s product range, pricing structure and quality, with handbags leading those efforts. Ready-to-wear and shoes remain areas of focus.
Portfolio growth and store cuts support the margin goal
Outside Gucci, comparable retail sales in Kering’s Fashion & Leather Goods segment increased 2%, supported by Saint Laurent, Bottega Veneta and Brioni. Jewelry and eyewear also recorded growth, providing a partial counterweight to Gucci’s weakness.
For the group, reported quarterly revenue benefited from a positive currency effect of one percentage point. That explains why sales were stable in reported terms despite the comparable decline.
Kering maintained its objective of improving its recurring operating margin in 2026, supported by efficiency measures while continuing to invest in its brands. This remains a management target, not a reported full-year result.
The group completed 105 net store closures in the first nine months, exceeding its previous full-year objective of 100. It now plans at least 125 net closures for 2026.
Conclusion
The next test for Kering is whether Gucci’s product changes can translate into stronger retail sales while the group completes its expanded store-closure plan. Its retained 2026 margin objective leaves cost efficiency and execution central to the remainder of the year.
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