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Kering Shares Jump on Narrower Sales Decline and Gucci’s Sequential Recovery

Early actions under new CEO Luca de Meo, including the L’Oréal beauty sale, are prompting guarded optimism about a turnaround.

Overview

  • Third‑quarter revenue reached €3.42 billion, a 5% comparable decline that topped consensus expectations compiled by FactSet.
  • Gucci sales fell 14% year on year to €1.34 billion, a marked improvement from the 25% drop reported in the second quarter.
  • Kering said foreign exchange was a significant headwind, with around a 5% negative currency effect on reported sales.
  • The stock rose roughly 9% on Thursday after the update and an earnings beat signaled stabilization under new leadership.
  • Kering agreed earlier this week to sell its beauty unit to L’Oréal for $4.7 billion, and analysts at Deutsche Bank, UBS and Citi cited early progress while urging patience until full‑year results and the strategic plan.