Key facts
- Gucci sales fell 6% to 1.29 billion euros in the third quarter.
- Kering's total group revenues decreased 1% after currency adjustments.
- Gucci's own store sales dropped 9%, while wholesale and licensing revenue increased.
Gucci's sales declined 6% to 1.29 billion euros in the third quarter, Kering announced Thursday, with low store traffic in China cited as a primary reason for the downturn. The Italian luxury brand, which contributes about half of Kering's profits, saw its own store network sales fall 9%, though wholesale and licensing revenues saw an increase. Overall group revenues decreased by 1% when adjusted for currency fluctuations. Kering has reduced its retail network by 105 stores and aims to close 125 by year-end as part of its turnaround plan. Investors are concerned about Kering's performance amid cooling demand in the US and weaker-than-expected sales from peers like LVMH and Hermes.