Kering shares collapsed 14% after negative forecast – Kommersant
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Share prices of the French fashion house Kering fell by 14% after the company published a negative forecast results of the first quarter of the year.
Kering expects its revenue for the quarter to fall 10% compared with last year. This drop is caused primarily by weak sales of Gucci, which will decline by 20% at the end of the quarter, the fashion house said in a release. The decline in demand for Gucci products in the Asia-Pacific region, particularly in China, was especially noticeable.
“China is a bit of a different story,” Claudia Panseri, chief investment officer for UBS France, told CNBC, comparing the Chinese market to the US and European markets. “It will take more time before we see consumer spending pick up here. The real estate market needs stabilization. At the same time, there is an increase in the number of people traveling internationally, so this should provide a boost to the luxury market.”
Kering experienced problems last year when its performance began to decline compared to the time of Covid restrictions. Based on the results of the fourth quarter of last year, Kering’s revenue decreased by 6%, to €5 billion. And the fashion house completed the entire 2023 with a 4% drop in revenue.
The company will publish its financial report for the first quarter of the year on April 23.
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