Gucci’s sales continued to decline in the third quarter of 2026 as weak demand in China undermined efforts to revive the luxury fashion brand and restore growth at its parent company, Kering.
Gucci generated revenue of €1.29 billion, equivalent to approximately $1.44 billion, during the quarter, as consumers remained cautious about spending on luxury goods. The brand’s performance highlights the difficulties facing high-end fashion companies as demand weakens in one of their most important markets.
Revenue from Gucci’s retail stores fell by 9%, although wholesale and licensing income increased, providing some support to overall sales.
The prolonged downturn has intensified pressure on Kering to demonstrate that its recovery strategy is working. Gucci, which contributes roughly half of the group’s profits, has been a major source of concern for investors amid several years of declining sales.
Kering chief executive Luca de Meo, who took over last year, is pursuing a five-year strategy aimed at improving profitability through cost reductions, streamlined operations and a stronger focus on customers.
The company is also planning to close 125 stores by the end of 2026 as part of efforts to reshape its retail network and improve efficiency.
However, weaker Chinese demand and a broader slowdown in luxury spending continue to complicate the recovery. The results underline the challenges facing established luxury brands as they attempt to attract shoppers while controlling costs and rebuilding consumer confidence.
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