{"id":138338,"date":"2024-04-24T17:06:18","date_gmt":"2024-04-24T15:06:18","guid":{"rendered":"https:\/\/luxus-plus.com\/?p=138338"},"modified":"2024-04-24T17:18:07","modified_gmt":"2024-04-24T15:18:07","slug":"kering-falls-sharply-in-first-quarter","status":"publish","type":"post","link":"https:\/\/luxus-plus.com\/en\/kering-falls-sharply-in-first-quarter\/","title":{"rendered":"Kering falls sharply in first quarter "},"content":{"rendered":"

Dragged down by the drastic fall of its flagship House Gucci, Kering has confirmed a sharp decline in sales in the first quarter of 2024. The luxury goods group headed by Fran\u00e7ois-Henri Pinault now expects operating income before non-recurring items to fall by between 40% and 45% over the first six months of the year.
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Kering’s first-quarter sales fell by 10% on a comparable basis<\/strong> (-11% on a reported basis) to 4.5 billion euros in 2024. This includes a negative currency effect of 3% and a positive perimeter effect of 2%, linked to the consolidation of Creed.<\/p>\n

A double whammy: \u201cin view of the deterioration in sales trends\u201d, the group headed by Fran\u00e7ois-Henri Pinault<\/strong> now expects its operating income recurring to fall by between 40% and 45% in the first half of 2024!<\/strong><\/p>\n

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\u201cThis underperformance is mainly attributable to Gucci<\/strong>, the Group’s flagship brand, whose sales fell by -21% (reported) due to a marked slowdown in China. According to the Group’s CFO, Armelle Poulou, \u201cthe market in China is fairly polarized between customers’ desire for the very high-end and the desire for more affordable products”<\/strong>, while in her opinion, “Gucci is positioned in the middle\u201d comments Antoine Fraysse-Soulier, Head of Market Analysis at eToro.<\/strong> He attributes the significant decline in recurring operating income in the first half to \u201cmajor investments\u201d and the fact that \u201cthe Group is going through a period of transition\u201d.<\/p>\n

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Stock market plunge<\/h2>\n

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The eToro analyst points out that \u201cfollowing these results, the stock \u2018fell \u2019by -4.6% in after-market trading, which would take the share price back to an October 2017 low!\u201d.<\/strong><\/p>\n

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