PARIS (Reuters) – Luxury giant Kering fell sharply on the Paris Stock Exchange on Wednesday after warning of a significant decline in its operating profit in the first half due to the difficulties of its flagship brand Gucci.
At 9:09 a.m., Kering shares fell 8.53% to 320.3 euros, by far the biggest drop in the CAC 40, almost stable at the same time (-0.07%).
It leads in its wake its competitors Hermès (-0.21%) and LVMH (-0.52%).
“Given the deterioration in turnover trends, the group now anticipates a decline in its current operating income for the first half of 2024 of around 40% to 45% compared to the first half of 2023,” said Tuesday evening the luxury group led by François-Henri Pinault.
In the first quarter, Kering recorded a 10% drop in like-for-like revenue. The fall reached 18% for Gucci, which represents almost half of the group’s sales and two-thirds of its operating profit.
At the end of March, Kering had already warned of a sharp drop in its turnover for the first months of the year, which caused its stock to fall by almost 12% in a single session.
(Written by Blandine Hénault)
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