Kering shares fall 11% as Gucci owner posts further sales declines
Kering shares dropped 11% after the Gucci owner reported weaker third-quarter sales. It will keep CEO Luca de Meo's plan and speed up store closures.
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what happened
Shares in Kering, the owner of Gucci, fell 11% on Friday after the group reported further sales declines. Management said it would stay with the turnaround plan set out by CEO Luca de Meo and accelerate store closures, aiming for 125 by year-end.
According to Reuters, the recovery that luxury brands have long promised is nowhere in sight. Pressure in the third quarter came from the expansion of the war and China's tax crackdown on the wealthy. Riots in Paris, which smashed Louis Vuitton shop windows and set e-bikes alight near Place Vendome, highlighted political risks at home as well as abroad. Shares in LVMH and Hermes fell 1% to 1.5% as crude prices reached their highest since early May, adding to pressure on household budgets.
JPMorgan analyst Chiara Battistini said in a note that progress on brand desirability remains at a very early stage.
why it matters
Higher oil prices erode household purchasing power, which weighs on demand for luxury goods. Investors face several pressures at once: China's tax policy, political risk in Europe and a cautious consumer.
market impact
Luxury sector: weak demand and China risks weigh on LVMH, Hermes and Kering
tags
instruments
sources
- Gucci owner Kering drops 11% as luxury braces for tough winter — Reuters, 23 October 2026 at 07:46 UTC
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