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Kering SA (PPRUF)
- Reuters
Luxury sector outlook clouded by China's slow recovery
Sales updates from Europe's big luxury brands have offered scant reassurance that Chinese demand for high-end fashion is recovering, leaving a cloud over the outlook for the industry. Warning on Tuesday that its first half profit would drop steeply, Kering flagged low demand in Asia, and China in particular, in addition to its struggles to turn around star label Gucci. Italian luxury group Ermenegildo Zegna also saw revenue fall in the first quarter, dragged down by declining sales of its Thom Browne label in the Greater China region.
- Reuters
FOCUS-Tuscany's luxury suppliers feel chill from China and changing trends
Waning Chinese demand for luxury goods has compounded the problems of Tuscany's traditional leather companies as the big fashion houses they supply reshape their strategies, leading to painful layoffs that could be just the start. LVMH, the world's largest luxury group, last week reported Asia revenues fell 6% in the first quarter. Many of the biggest luxury groups, which like Gucci base their leather goods production in Tuscany, had increased orders to respond to the post-pandemic boom.
- Reuters
Kering shares slump after the Gucci owner warns of H1 operating profit drop
Kering's shares slumped on Wednesday, after the French luxury goods company warned it expected a 40% to 45% plunge in first-half operating profit. Kering shares were down 8.5 percent in early session trading, dragging down slightly the shares of its French rivals LVMH and Hermes. Late on Tuesday, Kering warned of the likely drop in first-half operating profit as it also reported that first-quarter sales had declined as wealthy shoppers curbed spending on products from its star label Gucci.
