The Gucci store on Fifth Avenue is seen on March 20, 2024 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
Shares in Gucci-owner Kering fell on Thursday, after the luxury group announced a sharp decline in revenue in the first half of the year and issued a weak forecast for the remaining six months of the year.
Kering shares dropped as much as 9% as markets opened, trading around levels last seen in August 2017. It pared back some losses, with stock down 6.47% at 8:30 a.m. London time.
The luxury group late on Wednesday announced that its revenue had fallen 11% in the first half of 2024, compared to the same time period a year earlier. The decline was “against the backdrop of a slowing market in most regions except Japan,” the company said in a statement.
“There was a marked deceleration in China, while trends did not improve greatly in North America and Europe,” Kering added.
The luxury firm also said it was expecting recurring operating profit to tumble by as much as 30% year-on-year in the second half of 2024, citing “uncertainties weighing on the evolution of demand from luxury consumers.”
This is a developing story, please check back for updates.