French luxury group says its performance ‘worsened considerably’ in the first quarter amid Gucci reset.
French luxury group Kering said it expected sharply lower profits in the first half of 2024 compared with the previous year after sales at its top brand Gucci sank.
Last month Kering issued a profit warning alerting investors to its deteriorating sales, a rarity in the luxury sector where solid growth and margin gains have been the norm among rivals including LVMH and Hermes. While the global luxury market has been slowing for the past year after a multiyear pandemic boom, other groups have fared better in the transition.
“All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth,” he said. A more complete selection of the new designs is expected to be in stores by the summer, with about 40 per cent of product expected to be from de Sarno’s collections by the third or fourth quarters, the company said. The brand is still working to clear out old inventory.
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