Gucci Sales Continue to Decline: Kering Plans to Close 125 Stores

Sales of the famous Italian fashion brand Gucci have been declining for over three years. Its owner, France's Kering group, plans to net-reduce the number of stores in its retail network by at least 125 by the end of 2026. This was reported by Reuters.

According to Kering, in the third quarter of 2026, Gucci's revenue amounted to 1.291 billion euros. This is a 6 percent decrease on a comparable basis compared to the same period last year. Taking into account the impact of exchange rates, the decline was 4 percent.

Brand sales are negatively affected, in particular, by a decrease in the number of visitors to stores in China. Revenue in Gucci's own retail network shrank by 9 percent. In North America, the situation remained relatively stable.

Kering group's total revenue in the third quarter amounted to 3.345 billion euros. This is almost equal to last year in reported figures, and down 1 percent on comparable terms.

The company has net-closed 105 stores during the first nine months. It is planned to downsize at least 125 stores by the end of the year. At the same time, focus is being strengthened on marketing, product quality, and customer service to revive interest in Gucci.

Kering CEO Luca de Meo aims to double the company's profit margin from 11.1 percent in 2025 by the end of the decade. To achieve this, cost control, optimization of the retail network, and improvement of supply chains are envisioned.

However, analysts note that cost-cutting alone may not be enough to restore demand for the brand. As Gucci Creative Director Demna attempts to increase the brand's appeal through new collections, reviving sales remains one of the primary tasks facing the company.

For context, alongside Gucci, the Kering group also owns fashion brands such as Saint Laurent, Balenciaga, Bottega Veneta, and Alexander McQueen.