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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.

Overview

  • 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.