Luxury Briefing: Kering focuses on retail recovery and creative execution as Gucci rebuilds

On Wednesday, Kering reported third-quarter revenue of €3.4 billion ($3.65 billion), down 10% on a reported basis and 5% on a comparable basis. Gucci contributed €1.3 billion ($1.44 billion), down 14% year over year, while Yves Saint Laurent delivered €620 million ($664 million), down 4%. Bottega Veneta posted €393 million ($420 million), up 3% compared to last year, and the group’s other houses rose 1% to €652 million ($697 million).

“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” said CEO Luca de Meo. “This reinforces my determination to work on all dimensions of the business to return our houses and the Group to the prominence they deserve. We are working relentlessly on our turnaround.”

CFO Armel Poulou described the quarter as a sign of progress after a tough first half. Revenue fell 10% on a reported basis, but, she noted, “all regions contributed to the sequential improvement.” In the first half of the year, revenue declined 16%. North America and Western Europe showed the strongest momentum.

Retail accounted for nearly three-quarters of group sales. Poulou said Kering is concentrating on “fewer but higher-quality locations,” cutting underperforming stores and outlets to improve sales density. The group closed 55 stores this year, including 14 in the third quarter, with Gucci making up about half.

At Gucci, sales were down 14% on a comparable basis, an improvement from the 25% decline in the first quarter of 2025. Poulou credited “the injection of newness initiated last year [that has been] accelerating since,” saying it had begun to pay off, particularly in handbags. Leather goods “started their recovery,” she said, adding that the La Familia collection from new creative director, Demna, “has started regaining Gucci’s fashion authority” and connecting with younger shoppers.

Demna’s tenure at Gucci began with the release of “The Tiger,” a short film for the Spring 26 season, released on September 23. His first full runway collection will show in February 2026. Poulou called the reaction to the film and Demna’s early products “promising early signs of stabilization” in key categories.

Saint Laurent also showed resilience, with revenue down 4% year over year. Poulou said new collections were “very well received,” with ready-to-wear and shoes up double digits and refreshed leather goods beginning to gain traction. Bottega Veneta’s 3% growth was helped by strong demand in North America and the successful launch of the Campana bag.

COO Jean-Marc Duplaix told analysts that Kering is “accelerating and amplifying our cost and efficiency initiative.” He said the group is right-sizing its store network and “enhancing the productivity of our marketing investments,” while keeping the focus on long-term results. “The idea is not to cut the muscle,” he said, “but to be sure that what we are doing and where we are investing is always bringing results and return.”

In response to analyst questions, Poulou confirmed that store network optimization will continue into 2026 and 2027, with many stores being relocated or merged. “We are quite satisfied with the dynamics,” she said. Duplaix added that the company had expanded “a little bit too far” in recent years and would now rationalize the network “quite drastically.”

When Chiara Battistini of J.P. Morgan asked about regional trends, Poulou said performance in North America improved across the board. Saint Laurent and Balenciaga returned to growth, she said, while Bottega maintained strong momentum. Store traffic improved and average prices rose throughout the product mix.

Analysts also questioned the recent L’Oréal deal. Duplaix said the €4 billion ($4.28 billion) transaction “fulfilled completely our strategic objectives” and significantly reduced debt, though that was not its main purpose. Commenting on the rumors that Kering is considering selling eyewear, too, he reaffirmed that Kering Eyewear remains “core in the strategy of Kering” and “is doing extremely well.”

Bernstein analysts called the results “a beat versus consensus.” They said Gucci’s sequential improvement was driven by higher average prices in North America and Western Europe, supported by the new handbag mix. The firm wrote that while the beat is encouraging, “the market is likely to wait for tangible proof that Gucci’s turnaround is taking hold.”

For Duplaix, the goal is clear. “Our No. 1 priority is to reignite the top line,” he said. “The progress we made this quarter is encouraging, as is the response to the collections and launches.”

Funding rounds

• ShopMy has raised $70 million at a $1.5 billion valuation to accelerate its next stage of growth. “We’re doubling down on what’s working: Circles and Opportunities,” CEO Harry Rein told Glossy. Circles offers personalized, curator-led shopping feeds based on picks by trusted tastemakers, while Opportunities helps brands manage gifting and partnerships with detailed performance data. The company plans to invest in AI and machine learning to “build great shopping experiences,” while keeping its focus on human taste and authenticity. “We’re not an AI shopping tool, we’re all in on human,” he said. For premium and luxury brands, ShopMy is refining how data supports gifting strategies. Hundreds of independent luxury brands — like Khaite, Tôteme and Tibi — and major houses across Kering, LVMH and Richemont use the platform. “We show brands which creators accepted gifts, what they chose to buy, how they promoted it and what value it drove,” Rein explained. “It’s all about transparency and understanding who’s actually moving the needle.”
• Last week, Halfdays announced a $10 million Series A round led by apparel manufacturer Kellwood Company, with participation from Dick’s in-house investment fund DSG Ventures and model Taylor Hill. The Colorado-based label plans to grow its wholesale footprint with partners including Nordstrom, REI and Dick’s Sporting Goods, and will debut on Revolve and Shopbop this month. CEO Ariana Ferwerda said Halfdays is “taking an intentional approach” to global growth, with an early focus on key European and Asian markets, as it works to “bring more excitement and fun to an outdoor industry that, for a long time, has been stagnant.” “We’re expanding beyond ski into everyday outerwear, activewear and hiking to build a true 365-day brand,” Ferwerda told Glossy.

Earnings: Hermès

Hermès reported Q3 2025 revenue of €3.9 billion (about $4.2 billion), up 10% at constant exchange rates and 6% at current exchange rates, bringing year-to-date sales to €11.9 billion (roughly $12.8 billion). Growth was led by leather goods (+13%), supported by demand for icons and new equestrian-inspired designs, while ready-to-wear and accessories sales rose 6% on strong men’s and women’s sell-through. CFO Eric du Halgouët said the house remains “confident across all regions,” with inventories rebuilt ahead of the year’s end and Chinese New Year. Regarding Grace Wales Bonner’s appointment that was announced on Tuesday, he said she “has got a lot of things in common with Véronique Nichanian and a very contemporary outlook on fashion,” calling her arrival “a new chapter for men’s ready-to-wear.”

Luxury analyst Luca Solca of investment bank Bernstein noted that the brand’s “momentum in the Americas seems strong and relatively broad-based,” with growth “well-distributed across both the East and West Coasts.” He added that management was “constructive on Greater China,” where Hermès “continued to grow through the first nine months of the year, with a slight sequential improvement in Q3 and a strong and dynamic Golden Week.” Bernstein called out the brand’s Outperform stock rating with a $2,850 price target, calling Hermès “an investment for all cycles.”

Executive moves

• Hermès has appointed British Jamaican designer Grace Wales Bonner as its new menswear creative director, succeeding Véronique Nichanian after her 37-year tenure. Known for her intellectual approach to fashion and fusion of cultural influences, Wales Bonner will bring her distinctive vision to the house’s men’s ready-to-wear line.

News to know

• Kering employees in Italy staged a four-hour strike and demonstrations in Milan and Scandicci on Tuesday to protest the company’s decision to reduce remote work from two days to one per week. The action included staff from brands including Gucci, Balenciaga, Saint Laurent and Bottega Veneta, Unions accused Kering of refusing dialogue amid broader restructuring under new CEO Luca de Meo and continued sales declines driven by Gucci’s slump.
• Dsquared2 has begun a global reorganization that will cut around 15% of its workforce, or 40 of its 262 employees, with completion expected by early 2026. The move follows the brand’s decision to take production and distribution in-house after ending its licensing deal with OTB Group’s production hub, Staff International. Founders Dean and Dan Caten aim to strengthen operations and position the company for long-term growth.

Listen in

This week on the Glossy Fashion Podcast, senior fashion reporter Danny Parisi and international fashion reporter Zofia Zwieglinska break down the return of the 2025 Victoria’s Secret Show. This year, it was a diversity-focused spectacle, featuring WNBA player Angel Reese, original Angels including Adriana Lima, and performances by Missy Elliott and Karol G. The hosts debate whether it signals real change for the brand. They also cover Gucci’s €119 million E.U. fine for price-fixing and Armani’s leadership transition following Giorgio Armani’s passing. In the second half, editor-in-chief Jill Manoff interviews Outdoor Voices founder Ty Haney about her return to the brand, her plans to re-establish OV’s joyful identity through new capsule collections, and her plans to connect her ventures, which also include TYB and Joggy. Listen here.

Read on Glossy

Ahead of its 20th anniversary, Toms is set for a re-awakening. How the Kering-L’Oréal deal affects the fashion business. Mejuri and others are deepening ties with their retailers.