Gucci Q3 Sales Drop 6% to 1.29 Billion Euros as China Weakness Stalls Turnaround

Gucci posted a 6% decline in third-quarter sales to 1.29 billion euros, Kering reported Thursday, missing analyst estimates as persistently low store traffic in China continued to undermine the brand's multi-year turnaround effort. Reuters separately pegged the decline at 5%, reflecting slight differences in reported versus comparable-store calculations, but both figures came in worse than expected.

The weak Gucci result dragged on Kering's overall performance, with group revenues falling 1% on a currency-adjusted basis in the quarter. Kering shares slid on the news, with investors growing more cautious about the pace of recovery under the brand's ongoing repositioning push.

China has been the central pressure point for Gucci and the broader luxury sector, with softer consumer sentiment and reduced foot traffic in stores weighing on sales. The third-quarter miss reinforces concerns that the turnaround, which has been in motion for several years, has yet to gain durable traction in the market that matters most to high-end brands' growth prospects.