The myth is fading. Once a synonym for flamboyance and commercial triumph, Gucci now finds itself in a deeper crisis than any of its major rivals. The era of endless growth is over — and with it the self-assurance of an industry that no longer knows what it stands for.
Another Quarter, Another Setback
In the third quarter of 2025, Gucci’s sales once again declined sharply — down around 14 percent. For parent company Kering, this translated into a five-percent drop on a like-for-like basis. That analysts described the results as “better than expected” says more about expectations than reality: a steeper fall had already been priced in. After seven consecutive quarters of double-digit decline, it is clear how deep the brand’s crisis runs — and how uncertain Kering remains about its own identity.
The Emptiness After Excess
Since the departure of Alessandro Michele, Gucci has been searching for a new language. The baroque exuberance of the past gave way to a more restrained line intended to convey maturity and understatement. Yet the transition lacked force. Direct retail sales fell by another 13 percent, with Asia particularly weak. Europe and North America stabilized slightly, but not enough to offset the loss of desire. Luxury built on minimalism quickly loses its emotional energy.
A Group Without a Center
Kering is trying to cushion the decline through solid results at Saint Laurent and Bottega Veneta — the latter even posted slight growth. Yet Gucci remains the heart of the group, economically and symbolically. When that heart weakens, the entire organism loses its pulse. What once looked like a balanced portfolio now resembles a system of satellites without a gravitational center. Growth occurs only where Gucci recedes — not because the others are stronger, but because they carry less risk.
The End of the Old Formula
What the numbers reveal is ultimately a cultural shift. Classic luxury — defined by price, scarcity, and symbolic power — has lost its resonance. Consumers today seek meaning rather than ownership, attitude rather than status. Brands that define themselves through their past fall into defense when they can no longer produce new values for the present. Gucci’s crisis therefore stands for more than the decline of a fashion house — it marks the end of a system that has outlived itself.
Between Crisis and Correction
Whether Gucci finds its way back will depend less on the next creative director than on a fundamental redefinition of what luxury can mean today. The market no longer demands new silhouettes but new ideas. Those who want to remain relevant must design not just clothing but conviction. True renewal may begin where a brand finds the courage to stop imitating itself — to see its past not as a shield, but as a test of purpose. Luxury will only regain its power when it becomes more than form: a sign of awareness in an exhausted world.
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