World News for Students of English

13-02-2026 07:00

The luxury group that owns Gucci reported results for the last quarter of the year that were better than many people expected. This was the first quarter under a new CEO, who aims to bring stability after several difficult years.

The company has faced close attention from investors because of debt and lower profits since 2022, after Gucci’s old-fashioned style stopped attracting buyers. The new CEO said he already sees improvement at Gucci. Group sales reached about 3.4 billion dollars, which was only slightly lower than last year and stronger than forecasts. Gucci sales also fell less than expected, helped by new products, especially handbags. Because of this, company shares have risen strongly since the new leader took charge.

Even so, serious problems remain. The company has closed many stores and plans more closures as part of cost cuts. Annual operating income is now far below its level from a few years ago. The group must still work hard to compete with rivals during a global slowdown in luxury spending.

Difficult words: improvement (a change that makes something better), forecast (a statement about what will probably happen in the future), operating income (money a company makes from its normal business activities).

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