Kering targets net closure of 125 stores in 2026 as Gucci revenue falls 6%
Key Facts
Kering is targeting at least 125 net store closures across the group in 2026, after closing 105 stores net in the first nine months, according to its third-quarter results statement. The announcement came as the group reported revenue of €3.345 billion, flat on a reported basis and down 1% on a comparable basis. Gucci, the group’s largest brand, had revenue of €1.291 billion, down 4% on a reported basis and 6% on a comparable basis. Chief Executive Luca de Meo said, "Gucci’s recovery remains our clear priority." The store plan covers the entire group and is not a Gucci-specific closure target.
The closure figures show Kering reduced its network on a net basis during the period, with 128 closures and 23 openings in the first nine months of the year. The target of at least 125 net closures for the full year means the planned net reduction exceeds the total achieved by the end of September. The move is part of a group-wide recalibration of its retail network, as the company said it continues to execute its strategic plan. Kering did not directly link the closure decision to lower customer traffic in China or Japan. Management’s stated priority remains restoring momentum at Gucci, alongside improving the group’s performance.
The clearest pressure at Gucci was in its directly operated store network, where comparable sales fell 9% in the third quarter. Kering said lower customer traffic in Asia-Pacific, particularly China, and Japan weighed on performance. North America, by contrast, remained the brand’s most resilient market against a tougher comparison base. Across the group, sales from the directly operated retail network, including e-commerce, fell 3% on a comparable basis. But direct retail sales at the group’s houses excluding Gucci rose 2%, driven by continued growth at Saint Laurent, Bottega Veneta and Brioni.
Gucci’s wholesale and other revenue grew 35% on a comparable basis in the third quarter, a different trend from the performance of its directly operated stores. Wholesale revenue alone was €120 million, equivalent to 9% of the brand’s quarterly sales, and rose 45% on a comparable basis. At group level, wholesale and other revenue increased 3%, while direct retail network sales declined. The gap highlights differing performance across sales channels, but did not prevent Gucci’s total revenue from falling during the quarter. In the first nine months, Gucci revenue was €4.048 billion, down 7% on a reported basis and 5% on a comparable basis.
Gucci’s weakness extends beyond the results of a single quarter; a Reuters report said the brand’s sales had declined for more than three consecutive years and shopper traffic remained the main problem. In 2025, group revenue was €14.675 billion, down 13% on a reported basis and 10% on a comparable basis. Gucci recorded revenue of €6 billion that year, down 22% on a reported basis and 19% on a comparable basis. Gucci’s direct retail sales fell 18% and wholesale sales fell 34% on a comparable basis during the year. In the fourth quarter of 2025, the decline in the brand’s comparable revenue narrowed to 10%, compared with a 19% annual decline.
Other segments reported comparable growth in the third quarter, with Kering jewelry revenue rising 11% to €239 million and Kering eyewear revenue increasing 4% to €373 million. The group’s revenue for the first nine months was €10.565 billion, down 2% on a reported basis and flat on a comparable basis. Reuters said Gucci’s third-quarter sales decline was in line with market expectations. In the October 22 session, Kering’s American depositary receipts fell more than 4%, according to Investing.com, while shares trading under the ticker PPRUY closed at $21.72 that day, according to EL7 data. The available data did not include the stock’s session low.
Kering reaffirmed its target of improving recurring operating margin in 2026, relying on ongoing efficiency measures while continuing to invest in the appeal of its houses. The target provides a financial metric alongside the plan to reduce the store network, as the company remains focused on restoring Gucci’s momentum. De Meo said third-quarter revenue reflected the expected timing of performance in a more subdued macroeconomic environment. This year’s figures will be the next milestone in assessing the group’s progress toward improving margin. Later results will also show whether stronger wholesale revenue can offset continued weakness in Gucci store sales.