Gucci Owner Kering Shares Sink 11% as Luxury Sector Faces Tough Winter

Kering SA, the French luxury conglomerate that owns Gucci, Saint Laurent and Bottega Veneta, saw its shares tumble approximately 11% on October 23, 2026, following third-quarter earnings that disappointed investors. Gucci, its flagship brand, reported sales falling 6% to €1.291 billion in the quarter, with sales at directly operated stores down 9%. Overall comparable-store revenue slipped 1%, as stronger results at Saint Laurent, Bottega Veneta, and its eyewear and jewellery divisions partially offset Gucci's weakness. Management struck a cautious tone, citing continued weak traffic — especially in mainland China, where a government tax crackdown on wealthy consumers has depressed luxury spending — as well as broader headwinds from Middle East instability. CEO Luca de Meo said the company would stick with its turnaround plan, which includes making Gucci pricing more accessible to middle-class consumers and accelerating store closures, targeting 125 closures by year-end. JP Morgan analyst Chiara Battistini noted that progress on improving Gucci's brand desirability remained at a very early stage. Kering shares were already down more than 40% year-to-date before the results, raising questions about the pace of its recovery.