Gucci's sales slump sends parent company Kering's shares tumbling
Weak demand in China and Japan weighed on the luxury brand's third-quarter performance, complicating efforts to revive its struggling parent company.
Gucci's sales decline sent shockwaves through Kering's parent company, triggering a significant drop in its shares. The French luxury group disclosed a 6% decline in Gucci's revenue for the third quarter, attributed to weak demand in China and Japan. Analysts had predicted a smaller 2.8% drop. Kering's shares plummeted by 10.7% in early trading.
Although retail sales for the rest of the group rose 2%, the overall company's sales dipped 1% organically, totaling €3.3 billion. Kering's CEO, Luca de Meo, emphasized that the decline in Gucci remains a top priority as the company navigates a softer economic environment. Despite these challenges, Kering remains committed to improving its operating margin by 2026.
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