A Gucci luxury boutique in Paris, France, on Tuesday, October 22, 2024.
Bloomberg | Getty images
Kering’s actions fell on Thursday after the French luxury products group recorded lower sales than expected in the first quarter and pointed more winds against the winds against.
Revenue in the fashion giant loot 14% year -on -year in the first quarter to 3.9 billion euros ($ 4.4 billion), according to their Wednesday report, below the prognosis of 4.01 billion euros for LSE analysts.
Gucci sales, which represent almost half or total group income, fell 25% on a base comparable to 1.57 billion euros, since an attempt to change the brand remains underway.
The shares fell 5.1% at 8:25 am London time, after the negotiation of the shares was initially stopped in the open market.
The general weakness of the company was led by a 25% decrease in group sales in Asia, as well as a 13% drop in North America and Europe.
Kering’s president and CEO, François-Henri Pinault, said the company had faced a “difficult start in the year” and highlighted more challenges ahead for the luxury sector believed.
“In this environment, we are completely focused on executing our action plans to achieve our strategic and financial objectives and strengthen the positioning of our homes in all our markets,” he said in a statement.
“We are increasing our surveillance to resist the winds against macroeconomic faced by our industry, and I am convinced that we will be stronger from the current situation,” he added.
Kering last month appointed Demna Gvasalia as the new artistic director of Gucci, in her last attempt to turn her sick main label. However, the touch of shares is a beating in the appointment, since investors worried about the controversy around gvasalias, before work in a 2022 advertising campaign on the smallest Kering Balening label.
Gucci has suffered several consecutive quarters of weak sales, since their designs have fallen out of favor with buyers and their high exposure to the Chinese consumer has seen it hard for a recent recession in the Asian market once lucrative.
It occurs in the middle of a broader recession in the luxury market around recent years in greater inflation and economic conditions of Waker.
That landscape seemed to be changing at the beginning of the year, with a decisive high -end fashion houses that report more optimistic profits in the fourth quarter. However, never, analysts previously warned that a macroeconomic deceleration induced by the rate could that discomfort that recovery in the future.
“Waker’s global stock markets and the broader economic uncertainty will weigh confidence and see even more a recovery of luxury demand,” wrote Adam Cochrane, general analyst for retail and luxury capital research at Deutsche Bank, earlier this month.
Luxury brands expected them to be more protected than other retailers of the immediate impact of tariffs, with high -end labels that can generally transmit additional costs to rich consumers. However, analysts pointed out that brands with already weak sales, including kering, may be less located to do so.
“We can also be slower to increase prices due to tariffs that are given the feeling of customer customers and the elasticity of the general price, which is a key difference between Tan and LVMH (LVMH mentioned precisely the price as the main one of A.”
