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Kering Stock Falls 12% After Gucci Sales Drop 6% in Q3
Why is Kering stock down today?
Kering (KER.PA) stock fell about 12% on Friday to its lowest since June 2025 after Gucci's comparable sales dropped 6% in the third quarter on weak China and Japan store traffic.
Key numbers
| Kering share move (intraday range) | -11% to -12%Lowest since Jun 2025 |
|---|---|
| Gucci comparable sales, Q3 | -6%vs -2% in Q2 |
| Gucci revenue, Q3 | €1.29B-4% reported |
| Gucci own-store sales, Q3 | -9%Comparable basis |
| Kering group revenue, Q3 | €3.35B-1% comparable, in line |
What happened
Kering (KER.PA) stock fell about 12% on Friday to its lowest since June 2025 after Gucci's comparable sales dropped 6% in the third quarter on weak China and Japan store traffic. Comparable sales strip out currency swings and store openings or closings. Gucci's own stores did worse, with sales down 9%, and total Kering sales fell 1% to €3.35 billion. Kering also dropped its goal of returning to sales growth in 2026, keeping only a target to improve its profit margin. CEO Luca de Meo says fixing Gucci remains the group's top priority.
Why it matters
Kering owns Gucci, its biggest brand, and a drop in Gucci sales raises doubts about CEO Luca de Meo's turnaround plan. Fewer shoppers are walking into Gucci stores in China and Japan, and Kering no longer promises sales growth this year. Management has said the recovery will be gradual, and rivals LVMH and Hermès are also feeling weaker Chinese demand.
Who this affects
- MarketbearishMedium impact
- Luxury investors face fresh doubts; Kering shares hit hard.
- CompanybearishHigh impact
- Kering shareholders lose value; Gucci recovery looks slower than hoped.
- CompetitorsbearishLow impact
- LVMH and Hermès slipped about 1%, also hurt by China.
- IndustrybearishMedium impact
- Luxury brands face weak China demand, a bad sign.
Kering vs LVMH, Hermès
| KeringKER.PA | -1% | Gucci -6% | about -12% |
|---|---|---|---|
| LVMHMC.PA | +1% | Fashion -5% | -1% to -1.5% |
| HermèsRMS.PA | +4.3% | Weak China | -1% to -1.5% |
As of 2026-10-23
How we got here
Gucci's comparable sales decline narrowed to 2% in the second quarter.
LVMH reports fashion and leather sales down 5% in the third quarter.
Kering reports Q3 after Paris close: Gucci -6% comparable, group -1%.
Kering shares fall 11-12% to their lowest level since June 2025.
What to watch
- Whether Gucci store traffic in mainland China and Japan stabilises under de Meo's planQ4 2026
- Store closures: 105 net closures done so far, at least 125 planned for the year2026-12-31
- Kering's next full-year results and whether profit margin improves without sales growthQ1 2027
Educational content only. Not investment advice.
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