Shares of Kering, the owner of the Gucci brand, fell by 14% after information about a fall in profits in Asia, dragging European luxury brands with them. CNBC writes about this.
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The company warned of a possible drop in Gucci sales by 20% in the first quarter due to a decrease income in Asia. The drop contributed to a 10% overall decline in group revenue in the first three months of 2024.
Kering dragged shares of other luxury brands such as LVMH and Hermes down, although they remain more resilient to economic challenges.
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After opening trading, Kering shares were in last place in the Stoxx 600 index. Shares of LVMH, Christian Dior and Hermes fell more than 2% in early trading, while Burberry shares fell 5.7%. Kering shares fell 14.3% by 8:30 am London time.