Gucci sales fall 6% as Kering's third-quarter revenue stays flat

Kering, the French luxury group that owns Gucci, Saint Laurent and Bottega Veneta, reported third-quarter revenue of 3.345 billion euros on Thursday, October 22, 2026, flat on a reported basis and down 1% on a comparable basis. Gucci, its biggest brand, saw revenue fall 6% on a comparable basis to 1.291 billion euros, as fewer shoppers visited its stores in mainland China and Japan. Kering's other main brands grew, but the Gucci figures weighed on investor sentiment.

Gucci is the engine of Kering's business, bringing in close to 40% of the group's revenue in the quarter. Kering has been working to revive the brand's appeal, and reports on the results noted signs of renewed interest in Gucci. But a 9% fall in like-for-like sales at its own shops shows that the turnaround has not yet reached customers in large numbers, especially in Asia.

The "comparable basis" figure strips out currency movements and changes in the group's structure, so it gives a cleaner view of underlying demand. On that measure, Gucci shrank by 6%. The strong rise in wholesale sales, to department stores and other retailers, softens the picture, but analysts cautioned that much of that jump reflects a weak comparison with last year and the timing of orders rather than a lasting change.

The results also say something about the wider luxury market. Weak traffic in mainland China and Japan points to cautious spending by shoppers in two of the industry's most important regions. North America held up better. For luxury groups that depend heavily on a single star brand, a slowdown in that brand hits the whole company, which is why investors reacted sharply.

For readers following the fashion business, the numbers are a reminder that a fashion house's creative buzz and its sales can move at different speeds. Designers, suppliers and retailers that work with global luxury groups, in India as elsewhere, watch these results closely, because a cautious mood at the top of the industry can affect orders, store openings and hiring further down the chain.

Short-term: Kering's share price fell steeply on the results, and attention will turn to the final quarter of the year. Management said October trends were broadly in line with the third quarter in most regions.

Long-term: Kering will need Gucci's recovery to reach its own stores, not just wholesale partners, to restore growth. Its smaller brands, especially jewellery, may take on a larger role if Gucci's revival takes longer.

Who is affected: Kering's shareholders and employees, Gucci's suppliers and retail partners, luxury shoppers, and businesses in the luxury supply chain, including artisans and manufacturers who work for global fashion houses.

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