Kering has reported a 10% fall in third-quarter revenue to €3.4 billion (£2.9 billion), as continued weakness at flagship brand Gucci, where sales plunged by 14%, weighed on group performance.
The results, however, show improvement from the second quarter, when comparable sales dropped 15%. New CEO Luca de Meo, who officially took the helm in mid-September, said the figures underscore both the scale of the challenge and early signs of stabilisation.
“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” said De Meo. “This reinforces my determination to work on all dimensions of the business to return our Houses and the Group to the prominence they deserve.”
Gucci, which accounts for nearly 40% of Kering’s total sales, reported €1.3 billion in revenue, down 18% as reported and 14% on a comparable basis. Store sales declined 13% while wholesale revenue fell 25%.
The September appointment of Francesca Bellettini as President and CEO of Gucci, while retaining her position as Kering’s Deputy CEO, marked a pivotal moment for the brand. Bellettini, credited with driving record growth at Yves Saint Laurent, is now charged with restoring Gucci’s creative and commercial momentum.
She will work closely with Gucci’s new Creative Director, Demna, whose appointment earlier this autumn signalled a bold new direction for the Italian House.
Yves Saint Laurent’s revenue fell by 7% as reported, with double-digit growth in ready-to-wear and shoes offset by a 16% decline in wholesale.
Bottega Veneta continued to outperform, up 3% on a comparable basis.
Balenciaga and Alexander McQueen saw improving trends, while Brioni maintained solid growth in key regions.
The group’s Jewellery Houses, which include Boucheron, Pomellato, and Qeelin, delivered double-digit sales growth.
Kering Eyewear and Beauté revenue rose by 6%.
Across the group, sales from directly operated stores were down 6% on a comparable basis, while wholesale and other channels slipped just 2%.
Kering’s third-quarter performance points to early signs of stabilisation under its new leadership. With De Meo at the helm and Bellettini steering Gucci, the group is betting on renewed brand desirability and a gradual return to growth across its luxury portfolio.
This comes just days after Kering announced it was entering a long-term strategic partnership in luxury beauty and wellness with L’Oréal, including the creation of a joint venture in the wellness space.
Under the agreement – valued at €4 billion and expected to close in the first half of 2026 – L’Oréal will acquire Kering Beauté, including the House of Creed, a heritage fragrance brand renowned for its craftsmanship.
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