Florence: The parent company of luxury brands such as Gucci, plummeted on Thursday after the group reported a sharp revenue decline for the first half of the year and issued a weak outlook for the remainder of 2024. At market opening, Kering shares fell by as much as 9 percent, reaching levels not seen since August 2017.
Late Wednesday, Kering revealed that its revenue had decreased by 11 percent in the first half of 2024 compared to the same period in the previous year. The company attributed the decline to a slowing market in most regions except Japan.
Excluding foreign exchange effects, revenue in Japan surged by 22 percent during the first half of the year, whereas revenue from the broader Asian region, excluding Japan, dropped by 20 percent
Kering also warned that its recurring operating profit could decrease by as much as 30 percent year-on-year in the second half of 2024, citing "uncertainties weighing on the evolution of demand from luxury consumers." In the first six months of the year, recurring operating profit fell by 42 percent, consistent with the guidance provided after the first quarter.
Gucci experienced the steepest decline among Kering’s brands, with revenue falling by 18 percent on a comparable basis during the first half of the year. Other brands under Kering’s umbrella include Yves Saint Laurent and Bottega Veneta.
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