Kering Q3 2026 revenue: 3.3 billion euros, flat as reported, with Gucci down 6% on a comparable basis

Kering reported third-quarter 2026 revenue of 3,345 million euros on October 22, 2026, stable as reported and down 1% on a comparable basis. Gucci, its largest brand, fell 6% on a comparable basis to 1,291 million euros, worse than the decline analysts expected, while Saint Laurent, Bottega Veneta, jewelry and eyewear kept the group level.

What Kering reported

The group's headline sits close to what the market wanted. Yahoo Finance reports analysts expected roughly 3.34 billion euros, so the total landed in line. Kering said the quarter reflected "the anticipated second-half phasing and a more difficult comparison base, compounded by softer macroeconomic trends." Its own diagnosis is that traffic is the constraint, while conversion, average price and average ticket "remained supportive across most Houses."

By channel, sales from the directly operated retail network, including e-commerce, fell 3% on a comparable basis. Wholesale and other revenue rose 3%. For the first nine months of 2026, revenue was 10,565 million euros, down 2% as reported and stable on a comparable basis.

Fashion and leather goods, the segment that holds Gucci, took in 2,743 million euros, down 1% as reported and 3% comparable. Kering Jewelry reached 239 million euros, up 12% reported and 11% comparable. Kering Eyewear reached 373 million euros, up 6% reported and 4% comparable. All of those figures come from the company's release.

Gucci: where the quarter went wrong

Gucci is the number that moved the shares. Its 1,291 million euros compares with 1,343 million a year earlier. Kering attributes the drop to "a more demanding comparison base and a less pronounced newness effect than in the second quarter."

The detail is less comfortable than the summary. Sales in Gucci's own stores fell 9% on a comparable basis, with lower traffic in Asia Pacific, particularly mainland China, and in Japan. North America was the most resilient market. Wholesale rose 45% on a comparable basis to 120 million euros, but Kering itself ties that to a low comparison base and order-book timing, and it was only about 9% of the brand's quarter.

Analysts had expected a decline of about 5.4%, according to WWD figures quoted by Yahoo Finance, so a 6% fall is a miss rather than a collapse. It also follows a smaller decline in the second quarter, when Demna's first collections reached stores more broadly. Reuters notes the decline came despite de Meo's plan to make Gucci's prices more enticing to middle-class consumers, and despite Demna's Primavera collection reaching stores in mid-July. By our arithmetic from the release, Gucci was about 39% of group revenue in the quarter, which is why a weak Gucci quarter cannot be offset by growth elsewhere.

The rest of the portfolio

Kering's case for itself is breadth. Excluding Gucci, retail sales in fashion and leather goods rose 2%, led by Saint Laurent, Bottega Veneta and Brioni. Saint Laurent grew on North America and Western Europe. Bottega Veneta, the release says, "again outperformed across key markets." Balenciaga held up in leather goods, but its ready-to-wear and shoes were "still challenged," and Alexander McQueen is in what Kering calls a turnaround plan.

Jewelry is the cleanest good news. Directly operated retail in Kering Jewelry rose 18%, with Boucheron cited for good performance in Japan and South Korea and Pomellato for momentum in Japan. Eyewear grew in all regions, though Kering flagged phasing between the third and fourth quarters.

Stores and margin

Kering is shrinking its footprint faster than promised. In the first nine months it completed a net 105 closures, from 128 closures and 23 openings. It had set a full-year goal of 100 net closures, and now plans at least 125 for 2026. That follows 75 net closures in 2025.

Yahoo Finance reports that de Meo, who took over in September 2025, has said he aims to roughly double the 11.1% recurring operating margin of 2025 by the end of the decade through cost cuts, leaner supply chains and store closures. That is a target, not a result.

How the market read it

Reuters reported on October 23, 2026 that Kering shares fell 12% after the release, and that LVMH and Hermès were down 1% to 1.5%. Kering's finance chief told the market the recovery would be "gradual," with weak footfall the main challenge, especially in China.

Chiara Battistini of JPMorgan wrote that progress on brand desirability "remains in its very early stages," and Aviva Investors' Harsharan Mann argued that luxury labels may need to cut entry-level prices further. For context, Yahoo Finance notes LVMH reported on October 12 that organic sales in its fashion and leather goods division fell 5% in the third quarter. Our guide to every Kering house shows how the group is built.

Reuters set Kering's quarter inside a sector-wide squeeze. It pointed to the expansion of war in the Middle East and China's tax crackdown on the wealthy as added pressure on the biggest luxury groups, and it noted that Hermès' ready-to-wear division fell 2% in the third quarter on weak Chinese demand.

Outlook, and what changed at the top of the houses

The release's outlook says that "the recovery at Gucci is gradually taking shape" and that Kering "confirms its objective of improving its recurring operating margin in 2026." It gives no quarterly margin or earnings figure, so the profit effect of a weaker Gucci is not visible until the full-year results. It also gives no sales figure for Balenciaga or Saint Laurent, only qualitative descriptions.

The release lists several changes during and just after the quarter. Gucci and L'Oréal signed a 50-year exclusive beauty license on July 7, 2026, expected to take effect in mid-2027 subject to approvals. Romain Spitzer became CEO of Bottega Veneta on September 1, 2026. And two creative directors are leaving: Anthony Vaccarello at Saint Laurent, announced October 9, and Seán McGirr at Alexander McQueen, announced October 16, with new leadership to be named at both houses. Our creative director changes tracker follows each move.

Our take

Treat the quarter as mixed, not a disaster and not a turnaround. The group is flat, the diversified brands are doing their job, and management is closing stores ahead of schedule. But Gucci, the brand that decides the year, went backward after an encouraging second quarter, and the company has not yet shown that new product alone restores traffic. We would watch fourth-quarter Gucci sales against an easier comparison, and the next margin disclosure, before crediting the plan.