Gucci’s Long Road Back
Kering’s third quarter held steady on paper. Underneath, Gucci kept shrinking — and jewellery quietly became the group’s brightest line.
Kering reported third-quarter revenue of €3.35 billion on 22 October, down 1 per cent on a comparable basis. Gucci, which still generates most of the group’s profit, brought in €1.29 billion — a 6 per cent comparable decline — with sales in its own stores down 9 per cent as traffic weakened in mainland China and Japan.
Chief executive Luca de Meo was direct about the priority: “The recovery of Gucci remains our defining priority.” The group is also shrinking its footprint, with 105 net store closures in the first nine months and a target of at least 125 for the year.
“The very top of the market holding up, the aspirational middle under pressure.”ÉPURE
The brighter numbers came from smaller businesses. Kering Jewelry grew 11 per cent on a comparable basis to €239 million, and eyewear rose 4 per cent. Kering confirmed it still aims to improve its recurring operating margin in 2026; according to The Business of Fashion, the group has nonetheless stepped back from guidance for a return to growth this year.
Analysts at Berenberg described the season as “polarised”: the very top of the market holding up, the aspirational middle under pressure. Gucci sits squarely in the middle — which is why its turnaround has become the industry’s most closely watched test.
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