Worst day in a year: Kering shares plunged 10% after the Gucci numbers
“The turnaround will take a lot longer, and much more work, than the bulls would hope for,” JPMorgan analysts wrote.
Kering shares plunged as much as 10% after first-quarter sales at its Italian flagship brand Gucci dropped more than expected, underlining the challenge of reviving the brand’s appeal.
Gucci sales fell 8%, the 11th straight quarterly decline, as the Iran war weighed on spending by Middle Eastern shoppers and curtailed international travel. By 0827 GMT the shares were down 8.5% at €255, on track for their steepest daily decline in more than a year.
The result came days before Kering CEO Luca de Meo was due to unveil his plan to turn around the €33 billion group. “While guidance was confirmed, the timeline for a Gucci turnaround remains uncertain and likely gradual, against a challenging macro backdrop and ongoing geopolitical tensions,” Citi analysts wrote.
Like larger peers LVMH and Hermès, Kering is facing deteriorating demand from customers hit by the Middle East conflict.
Kering said it had seen strong demand for Gucci products in North America, but JPMorgan analysts said this was likely a trend for all luxury brands rather than Gucci specifically, and pointed to double-digit declines in all other regions. “This suggests, in our view, that the turnaround will take a lot longer, and much more work, than the bulls would hope for.”
Kering shares are down around 7% so far in 2026.