Kering Revenue at €3,345 Million as Gucci Falls 6% on a Comparable Basis
Key Facts
Kering revenue was €3,345 million in the third quarter of 2026, stable on a reported basis and down 1% on a comparable annual basis, according to the group’s statement issued on October 22 after the market close. The reported change included a positive one percentage point currency effect. Revenue was close to analysts’ consensus of about €3.34 billion, according to Investing.com coverage. But the group’s stability masked a clear divergence among its brands, with Gucci revenue down 6% on a comparable basis. Chief Executive Luca de Meo said revenue reflected the expected timing in a “weaker macroeconomic environment.”
Gucci recorded revenue of €1,291 million, down 4% on a reported basis and 6% on a comparable basis. Sales through its directly operated store network fell 9% on a comparable basis, a weaker performance than the brand’s overall revenue. By contrast, Gucci wholesale and other revenue rose 35% on a comparable basis; wholesale revenue was €120 million, equivalent to 9% of quarterly sales, and grew 45%. Direct retail sales at the other fashion and leather goods brands rose 2%, excluding Gucci. Revenue from the segment was €2,743 million, down 3% on a comparable basis, highlighting the concentration of much of the pressure in the group’s largest brand.
Kering attributed part of Gucci’s weakness to lower store traffic in Asia-Pacific, particularly mainland China, as well as in Japan. North America remained the brand’s most resilient market, the group said. At group level, Kering said store traffic remained the main constraint on performance, despite improvements in visit-to-purchase conversion rates, average prices and average transaction values. It also cited the timing of collections in the second half and a difficult comparison base, alongside weak macroeconomic trends. The group’s direct retail sales, including e-commerce, fell 3% on a comparable basis, while wholesale and other revenue rose 3%.
The other businesses performed differently from Gucci, with jewelry revenue rising to €239 million, up 12% on a reported basis and 11% on a comparable basis. Eyewear revenue was €373 million, up 6% on a reported basis and 4% on a comparable basis. The results show growth in both businesses, although eyewear revenue remained higher than jewelry revenue. For the first nine months of 2026, group revenue was €10,565 million, compared with €10,770 million in the same period of 2025. Cumulative revenue fell 2% on a reported basis and was stable on a comparable basis; 2025 figures were restated to exclude Kering Beauté’s contribution.
Gucci’s results followed a sequential improvement in the first half, when its revenue fell 8% on a comparable basis in the first quarter and then 2% in the second quarter, while group revenue rose 2% on a comparable basis in the second quarter to €3,652 million. Kering said the first-quarter decline in Gucci sales accelerated its retail improvement by 7 percentage points in the second quarter. But the brand’s renewed weakness in the third quarter brought store traffic and the recovery path back into focus. After the results, Kering’s American depositary receipts fell 11%, Reuters reported, while Investing.com described the stock’s decline on Friday as about 12%. Reuters also linked investor concerns to weak results from competitors and signs of slowing demand in the United States.
On restructuring, the group closed a net 105 stores in the first nine months, after 128 closures and 23 openings. It is now targeting net closures of at least 125 stores during 2026. Kering reaffirmed its target of improving recurring operating margin in fiscal 2026, supported by efficiency measures while continuing to invest in the appeal of its fashion houses. Asked whether a return to growth in total revenue remained a goal for the year, Chief Financial Officer Armelle Poulou declined to comment and referred the question to the full-year results. The third-quarter revenue release was scheduled for October 22 after the market close; the open financial calendar did not specify a later date here.