Gucci Sales Fell 6% as Kering Raised Its Store-Closure Target to at Least 125

In results announced October 22, Kering reported quarterly revenue of €3.345 billion, broadly unchanged on a reported basis and down 1% comparably. Gucci generated €1.291 billion, down 4% reported. Currency movements added one percentage point to the group’s reported performance, while there was no change in consolidation scope.

“The recovery of Gucci remains our defining priority,” Kering CEO Luca de Meo said in the release. Gucci’s directly operated retail sales declined 9% comparably, with lower traffic weighing on Asia Pacific, particularly mainland China, and Japan. North America remained its most resilient market, according to the company.

The weakness in store traffic contrasted with improvements in conversion, average prices and average tickets as new collections reached customers. Kering said Gucci was refining its product and pricing structure, improving quality and reducing time to market, with handbags central to the work.

Ready-to-wear and shoes remain areas of focus. Gucci’s wholesale and other revenue rose 35% comparably. Wholesale alone increased 45% to €120 million, or 9% of quarterly sales, reflecting a low comparison base and the timing of orders for new…