Kering shares slide after Gucci sales disappoint

MILAN/PARIS, April 15 (Reuters) - ‌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. Editing by Milla Nissi-Prussak and Mark ‌Potter)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• AMD (AMD) to offer senior notes in four parts
• Japan may see more yen intervention, faster BOJ rate hikes, ex-top FX diplomat says
• World War Two memorial in Washington vandalized with bubbles and graffiti