PARIS (Reuters) – Kering warned on Tuesday that its sales over the January-March period should have fallen by around 10% year-on-year, driven by a sharp decline in quarterly turnover at its flagship brand, Gucci, dashing the hope of seeing the luxury group halt the decline in its sales.
Citing a steeper-than-expected drop in sales in the Asia-Pacific region, Kering said in a preliminary earnings release that Gucci’s quarterly revenue was expected to be down about 20% year-on-year in data. comparable.
The group is due to publish its first quarter results on April 23.
In February, Kering announced its intention to invest this year to turn around the Gucci brand, suggesting an impact on its margins.
In line with comments made then, he praised Tuesday the success of the Ancora collection prepared by Gucci’s new artistic director, Sabato de Sarno, on sale in certain stores since mid-February.
The market should react negatively first to Kering’s announcements, commented Piral Dadhania, analyst at RBC, noting that the consensus anticipated a 3% decline in sales in the first quarter.
However, he added, “more time is needed to assess consumer response” as Gucci is in the “early stages” of its recovery and expanded product ranges will go on sale in the coming months. .
Gucci accounts for half of Kering’s sales and more than two-thirds of its operating profit.
(Mimosa Spencer, Jean Terzian, editing by Kate Entringer)
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