Shares in Kering, the French luxury-fashion group that owns Gucci, fell sharply as investors' hopes for a recovery continued to recede.
The group's sales declined, driven by a 6% drop at Gucci. The Gucci brand accounts for not far from half of Kering's total revenue, meaning its performance weighs heavily on the group's overall results.
The continued weakness at its flagship label has deepened concerns about the timing of any turnaround. Investors had been hoping that the group would begin to regain momentum, but the latest figures suggest that improvement is still some way off.
The decline in Gucci's sales underscores the challenges facing the luxury sector more broadly, as demand softens and brands work to restore growth. For Kering, the outlook depends largely on whether Gucci can stabilize its sales and return to expansion.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing