Kering Q1 Revenues Decline 3% on Gucci Weakness

Kering, the French luxury goods conglomerate, reported a 3 percent decline in first-quarter 2026 revenues at comparable exchange rates, totaling 3.57 billion euros, as its flagship brand Gucci continued to struggle amid weakening demand in key markets. The results, released Tuesday, sent the company's shares down more than 10 percent to around 252 euros on the Paris stock exchange, marking one of its steepest daily drops in over a year. The performance comes just days before Kering's Capital Markets Day in Florence, Italy, where Chief Executive Luca de Meo is set to outline his "ReconKering" strategy for reviving the group.

Gucci, which accounts for about 40 percent of Kering's revenues and the majority of its operating profits, saw sales fall 8 percent to 1.35 billion euros, the 11th consecutive quarterly decline and worse than the 6 to 7 percent drop anticipated by analysts. This marked a slight improvement from the 10 percent slide in the prior quarter, but it highlighted ongoing challenges. Executives attributed the downturn primarily to a slowdown in Asia, where sales dropped 14 percent, exacerbated by overdistribution in China and reduced consumer spending. Geopolitical...