Kering falls nearly 12% as hopes for a Gucci recovery fade
📉 Kering shares plunged on October 23 after its Q3 report. Group revenue reached €3.345 billion, down 1% on a comparable basis, while Gucci sales fell 6%.
👜 Gucci’s direct retail sales dropped 9%, as weaker footfall in mainland China and Japan outweighed improvements in conversion rates and average transaction value.
🏬 Kering did not reaffirm its target to return to revenue growth in 2026, but maintained its goal of improving its recurring operating margin. It also raised planned net store closures to at least 125 this year.
🔎 Bringing shoppers back to Gucci remains the central challenge. Cost cuts can support profitability, but confidence in the turnaround needs evidence of stronger demand.
$KERNEL
📉 Kering shares plunged on October 23 after its Q3 report. Group revenue reached €3.345 billion, down 1% on a comparable basis, while Gucci sales fell 6%.
👜 Gucci’s direct retail sales dropped 9%, as weaker footfall in mainland China and Japan outweighed improvements in conversion rates and average transaction value.
🏬 Kering did not reaffirm its target to return to revenue growth in 2026, but maintained its goal of improving its recurring operating margin. It also raised planned net store closures to at least 125 this year.
🔎 Bringing shoppers back to Gucci remains the central challenge. Cost cuts can support profitability, but confidence in the turnaround needs evidence of stronger demand.
$KERNEL