Kering Stock Plunges 12% to a 52-Week Low: Gucci's Slide Just Got Worse

Kering stock plunged about 12% on Friday, October 23, 2026, hitting a 52-week low in Paris after Gucci — the group's biggest brand — reported a 6% comparable sales decline in the third quarter, worse than the 2% drop in the second quarter. Group revenue held roughly flat at €3.345 billion, but investors focused on one thing: the Gucci turnaround they were promised is going backwards, not forwards.

What Happened

Kering, the French luxury group behind Gucci, Saint Laurent, Bottega Veneta and Balenciaga, released its third-quarter revenue late on Thursday. The headline group number looked calm — €3.345 billion, unchanged as reported and down just 1% on a comparable basis — but the mix underneath it was not calm at all.

Gucci generated €1.291 billion in the quarter, down 6% on a comparable basis. That was a clear acceleration from the second quarter's 2% decline, and it reversed the encouraging trend investors had started to price in. Morningstar noted that the deceleration raised fresh questions about the turnaround, and the market's verdict was immediate: Kering shares were down 12.7% at €186.40 by early afternoon in Paris, touching a session low of €185.44 — also the bottom of the stock's 52-week range — from Thursday's close of €213.50. The CAC 40, by comparison, was down only about 0.7%.

Why It's Blowing Up

Gucci is not just another brand in the portfolio — at €1.291 billion of a €3.345 billion quarter, it is the engine of the whole group. When Gucci slows, Kering slows. The company said store traffic remained the main constraint, with weaker footfall in mainland China and Japan weighing on the brand, and Morningstar pointed to weakness in North America as a key driver of the step-down.

The timing made the reaction sharper. Chief executive Luca de Meo has been selling a turnaround built on more accessible pricing, new collections from creative director Demna, and a leaner store network. Friday's numbers suggested that plan has not yet reached the shop floor. JPMorgan analyst Chiara Battistini noted that progress on improving brand desirability "remains in its very early stages," even as Gucci's wholesale business improved. Kering confirmed it will stick with the plan and accelerate store closures, targeting at least 125 net closures in 2026.

The sell-off also landed in a luxury sector already bracing for a difficult winter. Reuters reported that LVMH and Hermès were also down 1% to 1.5% on Friday, as higher oil prices and weak Chinese demand weighed on the industry. Kering, with the weakest flagship in the sector, took the hardest hit by far.

Key Facts

Share price: Kering fell about 12% on October 23 — down 12.7% to €186.40 at 12:58 p.m. Paris time, with a 52-week low of €185.44 intraday.
Group revenue: €3.345 billion in Q3 2026, flat as reported and down 1% on a comparable basis.
Gucci: €1.291 billion, down 6% comparable — worse than Q2's 2% decline.
Fashion & Leather Goods: €2.743 billion, down 3% comparable; excluding Gucci, retail sales rose 2%, helped by Saint Laurent, Bottega Veneta and Brioni.
Jewelry: €239 million, up 11% comparable, with retail network sales up 18%.
Eyewear: €373 million, up 4% comparable.
Store network: 105 net closures in the first nine months; at least 125 planned for the full year.
Outlook: Kering confirmed it aims to improve its recurring operating margin in 2026.

The Parts of Kering That Are Still Working

It was not bad news everywhere. Jewelry — Boucheron, Pomellato, Dodo and Qeelin — grew 11% to €239 million, and eyewear rose 4% to €373 million. Saint Laurent benefited from strong traction in North America and Western Europe, Bottega Veneta posted high-single-digit growth, and retail sales excluding Gucci rose 2%. De Meo summed it up: "The recovery of Gucci remains our defining priority."

That resilience is why Friday's drop was about Gucci rather than the whole group. Jewelry and eyewear together brought in roughly €612 million — not yet enough to offset a flagship that still delivers nearly two-fifths of group revenue and is shrinking faster than three months ago.

What's Next

The next test is whether Demna's new Gucci collections and the repricing strategy can lift store traffic during the holiday quarter, especially in China and Japan. Investors will also watch the pace of store closures. For now, Friday's message was blunt: until Gucci stops sliding, Kering's share price will keep trading on Gucci alone. This post reports what happened and how markets reacted; it is not financial advice.

Sources

FAQ

Why did Kering stock fall 12% today?

Kering reported third-quarter results late on Thursday showing Gucci sales down 6% on a comparable basis — worse than the 2% decline in the second quarter — which reignited doubts about the brand's turnaround and sent the shares to a 52-week low.

How much revenue did Kering make in Q3 2026?

Group revenue was €3.345 billion, flat as reported and down 1% on a comparable basis. Gucci contributed €1.291 billion, jewelry €239 million and eyewear €373 million.

Which Kering brands are still growing?

Jewelry grew 11% and eyewear 4% on a comparable basis, while Saint Laurent, Bottega Veneta and Brioni supported a 2% rise in retail sales excluding Gucci.

What is Kering doing about Gucci?

Management is sticking with CEO Luca de Meo's turnaround plan — new Demna collections, more accessible pricing and a smaller store network, with at least 125 net store closures planned for 2026 — while confirming its aim to improve recurring operating margin this year.

Kering Stock Plunges 12% to a 52-Week Low: Gucci's Slide Just Got Worse — Again