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Kering has reported a 10% decline in third-quarter revenue to US $ 3.63 billion, as continued weakness at its flagship brand Gucci dragged on overall performance. The French luxury group said sales at Gucci fell 14%, with store revenues down 13% and wholesale business plunging 25%.
Despite the downturn, the results mark a slight improvement from the second quarter, when comparable sales had dropped 15%. Newly appointed Chief Executive Officer Luca de Meo, who officially took charge in mid-September, said the results highlighted both the scale of the challenge ahead and early signs of stabilisation.
De Meo said Kering’s third-quarter performance, though showing a sequential improvement, remained well below market levels. He added that this underscored his determination to strengthen “all dimensions of the business” to restore the group’s Houses to their “rightful prominence.”
Gucci, which contributes nearly 40% of Kering’s total sales, reported US $ 1.39 billion in revenue, down 18% as reported and 14% on a comparable basis. The brand’s underperformance continues to weigh heavily on Kering’s overall results.
In a key leadership move, Francesca Bellettini was appointed President and CEO of Gucci in September while retaining her role as Kering’s Deputy CEO. Bellettini, widely credited with driving record growth at Yves Saint Laurent (YSL), has been tasked with reviving Gucci’s creative and commercial momentum. She will work closely with Gucci’s newly appointed Creative Director Demna, whose arrival earlier this autumn marks a bold new chapter for the Italian fashion house.
At YSL, revenue declined 7% as reported, with strong double-digit growth in ready-to-wear and footwear offset by a 16% fall in wholesale sales. Bottega Veneta continued to outperform its peers, posting a 3% rise on a comparable basis. Balenciaga and Alexander McQueen both showed signs of improvement, while Brioni maintained steady growth in key markets.
Across Kering’s portfolio, sales from directly operated stores were down 6% on a comparable basis, while wholesale and other distribution channels slipped 2%.
Under its new leadership, Kering’s latest results point to tentative signs of stabilisation. With De Meo at the helm and Bellettini leading Gucci’s revival, the group is focusing on rebuilding brand desirability and driving gradual growth across its luxury labels.
The results come shortly after Kering announced a major long-term strategic partnership with L’Oréal in the luxury beauty and wellness space. The deal, valued at US $ 4.27 billion and expected to close in the first half of 2026, will see L’Oréal acquire Kering Beauté, including The House of Creed, the heritage fragrance label famed for its artisanal craftsmanship.
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