Gucci's slump weighs on Kering's third quarter as Japan and China traffic softens
Kering's third-quarter revenue held flat only because its jewellery and eyewear houses grew while Gucci's own stores shrank -- and the group's own release names softer store traffic in Japan, alongside China, as the reason, a split that cuts right through its biggest Japanese shop windows.
Kering said third-quarter revenue held flat on a reported basis at 3,345 million euros, down 1% on a comparable basis, as growth at its jewellery and eyewear divisions offset a decline at Gucci, according to the group's October 22 release. Over the first nine months of 2026, group revenue fell 2% to 10,565 million euros, flat on a comparable basis.
Gucci, still Kering's largest house, posted quarterly revenue of 1,291 million euros, down 6% on a comparable basis -- the steepest drop among the group's brands. Sales through Gucci's own stores fell 9% comparable, and Kering pointed to traffic as the specific cause: "lower traffic weighed on performance in Asia Pacific, particularly in Mainland China, and in Japan," the group said, even as conversion, average price and average ticket at Gucci all improved. Wholesale, a smaller and growing channel, rose 45% comparable to 120 million euros, or 9% of Gucci's quarterly sales.
The traffic problem is not even across Kering's Japan business. Kering Jewelry, home to Boucheron and Pomellato, grew 11% comparable in the quarter, and the group said Boucheron turned in "good performance in Japan and South Korea" while Pomellato "continued to build momentum, particularly in Japan." Kering Eyewear added 4% comparable. In the same quarter that Japanese footfall is weighing on Gucci's own stores, by Kering's own account it is helping carry two of its jewellery houses.
Kering kept shrinking its store count regardless, closing a net 105 stores over nine months and now expecting at least 125 net closures for the full year. Chief executive Luca de Meo said "the recovery of Gucci remains our defining priority," crediting Saint Laurent, Bottega Veneta, Brioni and the jewellery and eyewear divisions with extending their own momentum and saying the group is focused on renewing Balenciaga and Alexander McQueen. For now, the read on Japan is split down the middle: Gucci's floors need the traffic to come back before any group-wide recovery shows through, while the smaller houses picking up the slack are covering for it, not reversing it.
Change on a comparable basis (%)