Earnings
Kering shares slide 10% in Paris after Gucci's third-quarter sales fall 6% on a comparable basis
Growth in jewellery and eyewear held group revenue steady at €3.35 billion, but Gucci's own stores lost 9% as traffic in China and Japan weakened.
HedgeWeekly News Desk ·
Kering shares fell 10.4% in early Paris trading on Friday, weighing on a STOXX 600 index that was down 0.13% at 07:18 GMT. Investors were reacting to third-quarter figures, released after Thursday's close, that showed Gucci's comparable sales fell 6% to €1.29 billion.
Group revenue was €3.35 billion, flat on a reported basis and down 1% on a comparable basis, roughly in line with the €3.34 billion analysts had expected. Kering Jewelry rose 11% on a comparable basis to €239 million and Kering Eyewear grew 4% to €373 million, offsetting a 3% decline in the fashion and leather goods division to €2.74 billion.
Gucci's directly operated stores, which include e-commerce, saw comparable sales drop 9%. The company said North America was Gucci's most resilient market, while lower traffic hurt Asia Pacific, especially mainland China, and Japan. Gucci's wholesale revenue rose 45% to €120 million but is only 9% of its sales. Kering has closed a net 105 stores so far this year, beating its full-year target of 100, and now plans at least 125 net closures in 2026.
Why it matters: Chief executive Luca de Meo has called Gucci's recovery Kering's defining priority, and the quarter suggests that recovery is not yet showing up in Gucci's own stores. Excluding Gucci, retail sales in fashion and leather goods rose 2%, which points to a problem with the brand rather than with the whole group. Kering kept its goal of a higher recurring operating margin in 2026, but said the short-term economic backdrop has become harder. For funds holding European luxury stocks, the next tests are whether the store closures and cost cuts deliver that margin goal, and whether demand in China improves.