Kering’s Gucci Sales Slide Hits Stock Prices

By the Editorial Team · Monday, October 26, 2026

Kering’s shares dropped nearly 17% after the company reported a 1% decline in third-quarter comparable sales, driven by a 6% drop at Gucci, its largest brand. This continued weakness highlights persistent challenges in key markets like China and puts pressure on Kering’s efforts to revive growth amid economic uncertainty and leadership changes.

Shares of French luxury conglomerate Kering fell sharply on Friday following a continued decline in sales at its largest brand, Gucci, raising concerns about the group’s recovery prospects. The company reported a 1% year-on-year decrease in comparable sales for the third quarter, totaling €3.345 billion ($3.75 billion). Gucci’s sales were down 6%, a drag on the overall results since the Italian brand accounts for nearly half of Kering’s revenue.

Gucci has struggled with weakening consumer demand in recent years, particularly among aspirational luxury buyers, a segment that has been notably affected in China, Kering’s largest market. The company described the recovery of Gucci as its top priority amid an environment marked by economic uncertainty and changing market dynamics.

Kering’s shares dropped nearly 17% in Paris trading on Friday following the earnings release. Finance chief Armelle Poulou acknowledged on a post-report conference call that the company’s current position falls short of its goals, emphasizing the persistent challenges in China.

The third-quarter results came as a setback after the group expressed optimism in the previous quarter, when it reported a 2% increase in group sales driven by a “marked acceleration” at Gucci. Analysts have indicated that demand pressures in the luxury sector have countered the effects of the company’s internal efforts to boost performance.

While Kering said it is actively working to improve profit margins through cost-saving initiatives, it also signaled intentions to continue investing heavily in enhancing the desirability of its brands. The company described current revenue trends as reflective of a difficult macroeconomic backdrop.

Market observers noted that Kering’s renewed emphasis on operating margins represents a strategic focus on factors within its control amid external uncertainties. Some analysts expressed caution, noting that recent changes in Gucci’s creative leadership—including the appointment of Demna Gvasalia as artistic director and a new CEO—have yet to translate into stronger sales momentum. This has led to more tempered expectations regarding a rapid turnaround.

In an effort to revitalize the group, Kering brought in Luca de Meo as its chief executive last year. De Meo, a former head of car manufacturer Renault, has overseen a series of leadership and creative changes across the company’s portfolio, aiming to restore growth and profitability. Despite these measures, the continuing sales decline underscores ongoing challenges for Kering and Gucci in a competitive luxury fashion landscape.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.