Paris (France) (AFP) – Efforts to rekindle the desirability of troubled Italian fashion house Gucci failed to boost sales in the third quarter, with its parent company Kering reporting Thursday a flat performance in a softer luxury market. At 3.34 billion euros ($3.75 billion) in the three months to the end of September, Kering’s sales were stable from the same period last year, in line with analyst expectations. Excluding exchange rate fluctuations and changes to the business, sales dipped one percent.
Sales at Gucci fell by four percent to 1.29 billion euros. That is worse than the three percent decline registered in the second quarter, but Kering downplayed the decline as being due to a more challenging base of comparison last year for its flagship double-G brand. Gucci is key to Kering’s fortunes, but has been in freefall since 2023 as the brand lost its luxury cachet. It used to generate more than half of Kering’s revenue but that fell to 40 percent in 2025.
The company — which also owns Yves Saint Laurent and Bottega Veneta — unveiled a new strategy in April that aims to restore Gucci’s sense of exclusivity. “The recovery of Gucci remains our defining priority,” Kering’s chief executive Luca de Meo said in a statement. “We are steadily strengthening desirability and advancing our product development at pace,” he added. De Meo said the third quarter sales reflect “a softer macroeconomic environment.”
The fashion and leather goods division, excluding Gucci, saw retail sales rise by two percent driven by growth at Saint Laurent, Bottega Veneta, and Brioni. “The transformation of Kering is a multi-season undertaking, but the improvements we are seeing across the Group, notably in desirability and key operating indicators, reinforce our confidence in the direction we have set, and the determination of our teams to deliver it,” said de Meo.
© 2024 AFP
