Kering: stable revenue in third quarter, Gucci's decline offset by jewelry

A stable quarter, with own-network sales down 3%

In the third quarter of 2026, the change in reported revenue incorporates a positive foreign exchange effect of one percentage point and no scope effect. 2025 data have been adjusted to exclude Kering Beauté's contribution. The group attributes this quarter to the expected sequencing in the second half, a more challenging comparison base and a less favorable macroeconomic environment.

By channel, own-network sales, including e-commerce, declined 3% on a comparable basis. Indirect distribution (wholesale) and other revenues grew 3%. Over the first nine months of the year, revenue reached 10,565 million euros, down 2% on a reported basis and flat on a comparable basis.

The Kering Fashion & Leather Goods division generated 2,743 million euros in the third quarter, down 1% on a reported basis and 3% on a comparable basis. Its own-network sales fell 4%, but grew 2% excluding Gucci, driven according to the group by Saint Laurent, Bottega Veneta and Brioni. At Balenciaga, leather goods held steady, while ready-to-wear and footwear remained under pressure, according to the press release.

Gucci declines 6%, jewelry and eyewear advance

Gucci generated revenue of 1,291 million euros, down 4% on a reported basis and 6% on a comparable basis. When publishing half-yearly results on July 28, 2026, the group had reported a 5% decline on a comparable basis for the House in the first half. Over nine months, its sales stood at 4,048 million euros, down 5% on a comparable basis.

Gucci's sales in the own-network declined 9%. North America remained the most resilient market, while declining traffic weighed on Asia-Pacific, particularly in mainland China, as well as Japan. Conversely, indirect distribution grew 35%: sales to distributors reached 120 million euros, representing 9% of Gucci's revenue, up 45%, which the group attributes to a weak comparison base and order book effects linked to new collections.

Kering Jewelry generated 239 million euros, up 12% on a reported basis and 11% on a comparable basis, following a 17% increase over nine months. Jewelry own-network sales grew 18%, driven notably by Boucheron and Pomellato. Kering Eyewear reached 373 million euros, up 6% on a reported basis and 4% on a comparable basis, with growth across all regions.

Margin objective confirmed and at least 125 net store closures in 2026

Kering achieved 105 net store closures over the first nine months of 2026 (128 closures and 23 openings), following 75 net closures in 2025. The annual objective of 100 net closures has thus been exceeded, and the group now anticipates at least 125 net closures over the fiscal year.

The quarter was also marked by the exclusive 50-year licensing agreement concluded on July 7, 2026 between Gucci and L'Oréal in beauty. Its entry into force is scheduled for mid-2027, subject to regulatory approvals and termination of the existing license with Coty. Saint Laurent and Alexander McQueen also announced, on October 9 and 16, 2026, the departure of their artistic directors, Anthony Vaccarello and Seán McGirr.

"Gucci's turnaround remains our absolute priority," declared Luca de Meo, Chief Executive Officer of Kering. The group confirmed its objective of improving current operating margin in 2026, which it bases on ongoing efficiency measures, while maintaining a strong level of investment in the desirability of its Houses.