Kering Warns of Steep Gucci Sales Plunge Amid Luxury Profit Warning
Kering, the owner of Gucci, saw its shares plummet 14% after issuing a rare profit warning, citing an expected 20% decline in Gucci sales in the first quarter of 2024, particularly in the Asia-Pacific region. This forecasted drop in revenue sets Kering apart from other luxury brands like LVMH and Hermes, which have shown resilience in the face of economic challenges. The slowdown is primarily attributed to Asia, especially China, and Kering is set to release its first-quarter revenue data on April 23. The company's struggles come after Gucci's strong performance in 2021, and Kering has been investing in its brands despite lower margins.