Kering shares plunged as much as 10% on Wednesday after first-quarter sales at its Italian flagship brand Gucci dropped more than expected, underlining the challenges in 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.
Shares were down 8.5% to 255 euros at 0827 GMT and on track for their steepest daily decline in more than a year.
The result came days before Kering CEO Luca de Meo is due to unveil his strategic plan to turn around the 33-billion-euro ($39 billion) group’s fortunes.
“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 Hermes, Kering is facing deteriorating demand from customers impacted by the conflict in the Middle East.
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 just Gucci, 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,” they said.
Kering shares are down around 7% so far in 2026.
(Reporting by Danilo Masoni)
