Kering’s group sales fell 1% organically in Q3 2026 to €3.3bn, dragged down by a 6% drop at flagship brand Gucci. Weak demand in mainland China and Japan weighed on Gucci, missing analyst forecasts of a 2.8% decline. Excluding Gucci, other brands like Saint Laurent and Bottega Veneta grew 2%.
CEO Luca de Meo called Gucci’s recovery the group’s “defining priority” amid a softer macroeconomic environment. Kering confirmed plans to improve recurring operating margin but omitted its previous goal of returning to revenue growth this year. CFO Armelle Poulou said the company is ahead of schedule closing underperforming stores—105 shut, 20 more set to close.
Meanwhile, LVMH reported a 1.8% organic sales fall, and Hermès delivered mixed results. Demand is pressured by Middle East conflict, inflation, and recent riots in France affecting luxury tourism. Bright spots: 11% growth at jewellery (Boucheron) and 4% in eyewear.
Source: Financial Times Companies · Summarized by HeadlinesBriefing