Kering targets 125 net store closures in 2026 as Gucci revenue falls 6%
Key Facts
Kering said on October 22 that its revenue reached 3,345 million euros in the third quarter, flat on a reported basis and down 1% on a comparable basis, as it raised its target to at least 125 net store closures in 2026. In its results statement, the group said the target follows a net reduction of 105 stores in the first nine months, through 128 closures and 23 openings. Revenue at Gucci, the group’s largest brand, was 1,291 million euros, down 4% on a reported basis and 6% on a comparable basis. Chief Executive Luca de Meo said quarterly revenue “reflects the timing we expected, in a more subdued macroeconomic environment,” adding that “Gucci’s recovery remains our clear priority.” The company’s approach therefore combines a smaller store network with improved recurring operating margin, while keeping the restoration of Gucci’s momentum at the top of its priorities.
The network figures show that the group closed more stores than it opened in the first nine months, while the annual target raises the level of net reduction it aims to achieve in the remainder of 2026. Kering said the target covers the group’s network and is not limited to Gucci stores. The network reduction coincides with a goal of improving recurring operating margin in 2026, through ongoing efficiency measures and continued investment in the appeal of the group’s houses. De Meo said the quarter unfolded in a more subdued macroeconomic climate, putting brand and sales-channel performance under pressure. The results do not set a separate target for Gucci closures, but present the store plan at group level. The company is thus placing store-count reductions and margin improvement alongside a priority to revive its largest brand.
Sales channels diverged in the quarter: Kering’s directly operated retail network, including e-commerce, recorded a 3% comparable decline, while wholesale and other revenue rose 3%. At Gucci, directly operated retail sales fell 9% on a comparable basis, while wholesale and other revenue increased 35%. The brand’s wholesale sales reached 120 million euros, or 9% of its quarterly sales, after growing 45% on a comparable basis. Kering said weak customer traffic in Asia Pacific, particularly China, and Japan weighed on Gucci’s performance. North America, by contrast, remained the brand’s most resilient market against a more challenging comparison base. The figures show a widening gap between Gucci’s store sales and wholesale sales, despite the continued decline in the brand’s overall revenue.
Other brands and businesses grew in the quarter: directly operated retail sales at the group’s houses excluding Gucci rose 2%, supported by continued growth at Saint Laurent, Bottega Veneta and Brioni. Kering’s jewelry revenue increased 11% to 239 million euros, while eyewear revenue rose 4% to 373 million euros. These results set Gucci’s weak performance against growth in other parts of the group, but did not change the overall outcome: group revenue fell 1% on a comparable basis. Historically, Gucci revenue was 1.3 billion euros in the third quarter of 2025, down 14% on a comparable basis; its comparable decline was therefore less steep in the third quarter of 2026. Reuters said Gucci sales had continued to fall for more than three years and that customer traffic, particularly in China, remained the main problem. The agency also reported that Gucci accounts for about half of the group’s profits and that its comparable sales decline in the third quarter was in line with market expectations.
The results weighed on Kering shares, with Reuters reporting that the stock fell 10% on Friday, October 23, after the group announced a sales decline. In EL7 data, the PPRUY ticker closed at 21.72 dollars on October 22, the closing price on the day before the decline reported by Reuters. The agency said the company stuck to its recovery plan and accelerated store closures, while Kering’s statement reaffirmed its goal of improving recurring operating margin in 2026. The return of customer traffic to Gucci stores, particularly in China and Japan, remains an operational focus for management, alongside growth in wholesale and sales at other brands. The company has set 2026 as the target date for its margin goal, while network reduction is also a stated target for that year. The group’s subsequent results will provide further indications of progress on the store plan and Gucci’s recovery path.