Kering reports 10% drop in Q1 sales, Gucci's revenue down 18%, anticipates 40-45% decline in first-half operating income.
Luxury goods conglomerate Kering, the parent company of Gucci, has reported a 10% drop in first-quarter sales, with Gucci's revenue declining by 18%. Kering now anticipates a 40% to 45% decline in recurring operating income in the first half compared to the same period a year ago. The decline in revenue and sluggish Chinese demand have led to Kering's ongoing struggle to turn around Gucci's performance, despite a strategic repositioning of the brand. This has caused Kering to expect a sharp drop in its operating profit for the first half of the year.
April 22, 2024
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