March 20, 2024, Gucci store on Fifth Avenue in New York.
Michael M. Santiago | Michael M. Santiago Getty Images News | Getty Images
Shares in Gucci owner Kering fell on Thursday after the luxury goods group announced a sharp drop in revenue in the first half of the year and gave a weak forecast for the remaining six months of the year.
Kering shares fell 9% at the open, trading around August 2017 levels.
The luxury goods group announced late Wednesday that revenue in the first half of 2024 fell 11% compared with the same period last year. The decline came “against the backdrop of market slowdown in most regions except Japan,” the company said in a statement.
Kering added: “The Chinese market has decelerated significantly, while trends in North America and Europe have not improved significantly.”
The luxury goods company also said it expects recurring operating profits to fall by 30% annually in the second half of 2024, citing “uncertainty affecting changes in luxury consumer demand.”
This is a developing story, please check back for updates.
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