{
  "id": 16204520,
  "title": "Gucci owner Kering drops 16% as luxury braces for tough winter",
  "url": "https://urgent.news/2026/10/23/gucci-owner-kering-drops-16-as-luxury-braces-for-tough-winter",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-23T15:56:45.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40445645/gucci-owner-kering-drops-16-as-luxury-braces-for-tough-winter"
  },
  "original_language": "en",
  "account": "On Friday, shares in Gucci owner Kering plummeted 16%, marking its worst day ever after the group announced further sales declines. Despite CEO Luca de Meo's turnaround plan, the luxury group remains pessimistic, as it plans to close 125 more stores by the end of the year. The decline in luxury stocks comes amid escalating tensions in the Middle East, coupled with China's tax crackdown on the wealthy, which has exacerbated the challenges faced by the world's top luxury conglomerates during the third quarter. Riots in Paris, where Louis Vuitton shop windows were smashed, and Milan, adding to the political risks for luxury brands, both domestically and internationally. Shares in Hermes also fell 4%, reaching a four-year low, while LVMH declined 1.5%, as crude prices reached $115 a barrel, their highest level since early May. High gasoline prices are straining household budgets and dampening consumers' willingness to purchase designer clothing and accessories. Gucci's new 'Made in China' sneaker models deviate from the Italian tradition, but analysts suggest luxury labels may need to lower the prices of their entry-level products to attract shoppers back. JPMorgan analyst Chiara Battistini stated that the progress in improving brand desirability is still in its nascent stages. Kering's finance chief acknowledged that the brand's recovery would be gradual, with weak footfall being the primary challenge, particularly in China. Even high-end Hermes is experiencing a slowdown, with its ready-to-wear division contracting 2% in the third quarter due to weak Chinese demand. Overall, the luxury sector is grappling with a significant setback, as valuations have plummeted, with Hermes at a ten-year low.",
  "summary": "LONDON: Shares in Gucci owner Kering tumbled 16% on Friday, set for their worst day ever after the group reported further sales declines but said it would stick with CEO Luca de Meo’s turnaround plan and accelerate store closures, aiming for 125 by year-end. The recovery long promised by luxury brands seems nowhere in sight, as the expansion of war in the Middle East, along with China’s tax…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}