Gucci sales to plunge 20% in first quarter as Kering issues rare luxury profit warning
French luxury group Kering has issued a profit warning, projecting a 20% decline in Gucci sales in the first quarter of 2024. The decline is primarily attributed to decreasing transactions in Asia, particularly in China. Kering anticipates a 10% drop in overall group revenues for the same period. The weak performance sets Gucci apart from rival luxury brands LVMH and Hermes, which have demonstrated resilience in challenging economic conditions. Kering will release its first-quarter revenue data on April 23. The company recently reported a 6% decrease in fourth-quarter 2023 revenues across its major brands. Kering has reshuffled Gucci’s senior leadership as part of a broader strategy and stated that a new collection has received a positive reception.