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Kering faces steep sales decline

25/07/2024
Kering faces steep sales decline
French luxury group Kering reported a sharper-than-expected 11% drop in second-quarter sales to 4.5 billion euros ($4.9 billion) on an organic basis. Analysts had anticipated a 9% decline. The company forecasts a 30% decrease in second-half operating income, following a 42% drop in the first half to 1.6 billion euros.

Sales at Gucci, which accounts for half of Kering's revenue, fell 19%, exceeding the expected 16% decline. Gucci is undergoing a revamp under new creative director Sabato de Sarno, but faces challenges due to a global luxury market downturn and weak demand in China, traditionally a strong market for the brand.

Kering's sales in Asia dropped 25%, despite higher revenues in Japan, with significant declines in Hong Kong and Macau.

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