Results for: Kering

French luxury conglomerate Kering, home to Gucci, Yves Saint Laurent, and Bottega Veneta, saw a 10% decline in sales in the first quarter, primarily due to challenges faced by Gucci.Gucci’s sales dropped by 18% to €2 billion in the first quarter, contributing to Kering’s overall revenue decline of 10%.Analysts are uncertain about Gucci’s recovery trajectory amidst challenging market conditions, particularly in China, where the brand has been impacted by economic uncertainties and reduced spending.Gucci attributed its sales decline to a sharp downturn in Asia, particularly in China, where it operates over two dozen stores.The challenges encountered by Kering underscore the broader difficulties faced by Western luxury brands operating in China amid ongoing market turbulence.

Shares of Kering, the luxury conglomerate that owns Gucci, plummeted after the company issued a profit warning for the first half of the year. The announcement raised concerns about the performance of Gucci, which is Kering’s largest brand.

Luxury giant Kering forecasts a significant drop in operating profits and a decline in Gucci’s revenue in the first half of 2024. Amidst a challenging market environment, particularly in Asia-Pacific, Gucci’s organic revenue witnessed an 18% slide. Despite these declines, Bottega Veneta registered a 2% growth.

Kering, a global luxury goods conglomerate, reported a decline in its first quarter revenue, attributed to a challenging macro environment, weak retail traffic, and currency headwinds. The company’s revenue on a reported basis fell 11%, while on a comparable basis it declined by 10%, compared to the Bloomberg consensus of a 10.2% slide. The decline was particularly impacted by the performance of its Gucci brand, which saw a 18% decline on a comparable basis. However, this was slightly better than the Bloomberg consensus of a 19.4% decline.