Worst day in a year: Kering shares plunge 10% after Gucci’s results

Kering shares plunged 10% after first-quarter sales at its flagship Italian brand, Gucci, fell more sharply than expected. It underlined how hard it is to make the brand desirable again.

Gucci’s sales fell 8% — an eleventh consecutive quarterly decline — as the war in Iran weighed on spending by Middle Eastern shoppers and curbed international travel. By 08:27 GMT the stock was down 8.5% at €255, heading for its worst one-day fall in more than a year.

The result came days before Kering chief executive Luca de Meo was due to present a turnaround plan for the €33 billion group. “While guidance has been confirmed, the timing of the Gucci turnaround remains uncertain and is likely to be drawn out, against a difficult macroeconomic backdrop and continuing geopolitical tensions,” Citi analysts write.

Like its larger rivals LVMH and Hermès, Kering is contending with deteriorating demand from customers affected by the conflict in the Middle East.

The company pointed to strong demand for Gucci product in North America, but JPMorgan analysts countered that this is most likely a trend across all luxury brands rather than a Gucci achievement, and pointed to double-digit declines in every other region. “That, in our view, suggests the turnaround will take far longer and far more work than the optimists hope.”

Kering shares are down about 7% since the start of 2026.