Gucci owner Kering tanks 14% after Asia profit warning, dragging down Europe luxury brands

Shares of a luxury group dropped 14% after a profit warning indicated a potential 20% decline in Gucci sales for the first quarter. The company also projected a 10% drop in overall group revenues. This forecast sets the fashion house apart from other luxury lines. The decline in sales is primarily due to decreasing transactions in Asia, particularly China. Gucci’s recent performance has been challenging, with affluent consumers shifting towards more “quiet luxury” brands. In the fourth quarter of 2023, sales fell not only for Gucci but also for other major brands under the group. Kering, the parent company, has reshuffled Gucci’s leadership and recently released its new Ancora collection, which has received a positive response.