Kering is closing over 200 stores globally, the latest sign of a luxury sector in distress. The French group, behind Gucci and Saint Laurent, reported a 13% revenue drop to €14.7 billion ($17.38 billion) in 2025, with its star brand Gucci suffering a 22% decline. Leadership changes and shifting tastes have challenged its performance, prompting the closures targeting underperforming locations. 100 additional stores are planned, with Gucci expected to account for the largest share of cuts, following 133 closures in 2025.

This operational discipline aims to protect the brand while reducing inventory by 8% in 2025. The moves reflect broader industry struggles, with McKinsey forecasting low-single-digit growth for fashion in 2026 amid consumer caution and tariff pressures. Kering's stock is down 9.25% year-to-date, and analysts remain cautious despite early signs of stabilization.

The company is pivoting toward jewelry and a $4.7 billion beauty sale to L'Oréal, though physical retail dominance persists at $14.4 trillion in 2025.