PARIS (Reuters) -French luxury group Kering reported a 10% drop in first-quarter sales on Tuesday, dragged down by a slowdown at its star label Gucci, which suffered from weakness in Asia while undergoing a design overhaul.
Kering shares fell 8% on Wednesday after the French fashion house said it expects to see its profits drop by up to 45% in the first half of 2024 driven by a decline in revenue from its top money maker,
Analysts had expected first-half operating profit to shrink by 24-30 per cent, according to estimates compiled by Bloomberg. Last month Kering issued a profit warning alerting investors to its deteriorating sales,
And while some companies in the sector have remained resilient, Gucci (and parent Kering SA) has struggled to stem a sharp decline in revenue. On Tuesday, Kering said that with deteriorating revenue trends,
Kering's shares fell 8% in early Frankfurt trade on Wednesday after the French luxury group said it expected a 40-45% plunge in first-half operating profit.
Shares of French luxury group Kering sunk more than 9% Wednesday after the company warned that it expects a sharp downturn in first-half profits as demand for its Gucci brand continues to wane.