Kering Faces Steep Profit Decline as Gucci Sales Slump

Kering SA, the owner of Gucci, anticipates a significant drop in first-half profits due to declining sales, particularly in China.

Kering's stock has plummeted following a profit warning, with shares dropping as much as 9% in early trading.
Gucci's sales decreased by 18% in the first quarter, significantly impacting Kering's overall performance.
The luxury group is undergoing a strategic repositioning, hoping new creative director Sabato de Sarno's designs will revive the brand.
Despite a challenging market, Kering's other brands like Yves Saint Laurent and Bottega Veneta show mixed results.
Kering's struggles contrast with competitors like LVMH and Hermes, who have reported better resilience in the luxury market.