Kering shares sink after Gucci sales fall for 11th straight quarter

Kering’s latest numbers showed how much is riding on Gucci. The French luxury group said first-quarter revenue fell to €3.568 billion, down 6% as reported, while Gucci generated €1.347 billion, a 14% reported drop and an 8% decline on a comparable basis. For Gucci, it was the 11th straight quarterly sales fall, a run that has turned a hoped-for rebound into a test of whether the brand’s core appeal has faded.

Investors sold first and asked questions later. Kering shares fell as much as 10% intraday after the results, and the stock was still down 8.5% at 0827 GMT, putting it on track for its steepest daily decline in more than a year. The reaction underscored how little patience markets have left for a turnaround that is taking longer than expected. Analysts had been looking for a 4.3% decline at Gucci, so the actual 8% comparable drop landed well short of expectations.

The damage was not evenly spread. Kering said Gucci’s North America business rose 8% in the quarter, but Western Europe and China remained weak, showing that the brand is still losing traction in two of the most important luxury markets. Sector conditions also stayed difficult, with Middle East tensions weighing on spending by affluent travelers and curbing international travel, both of which matter to high-end brands that depend on mobile customers and tourism flows.

Kering tried to frame the quarter as progress rather than failure. The company said group revenue stabilized and described the period as an important first step in its recovery, adding that “Gucci remains our top priority.” But that message had limited effect against a sales trend that has now stretched across nearly three years. Gucci is still Kering’s flagship, and repeated declines there continue to drag on confidence in the wider group.

The timing added pressure. Luca de Meo was due to unveil Kering’s new strategic roadmap, called ReconKering, at a Capital Markets Day in Florence on April 16, 2026, giving the market little time between the earnings disappointment and the next major test of management’s plan. Kering has already completed major transactions in beauty, jewelry and real estate, including its strategic alliance with L’Oréal, moves that sharpened the portfolio and strengthened the balance sheet.

The comparison with rivals is still uncomfortable. LVMH and Hermès have also faced softer luxury demand, but Gucci’s slump remains unusually persistent, raising the question of whether Kering’s problem is broader sector fatigue or a company-specific execution gap. For now, the market is betting that Gucci needs more than time. It needs clearer product momentum, better pricing power and a stronger read on demand in China and the U.S. before investors believe the turnaround is real.