Gucci’s Declining Sales Pose Challenges for Kering Amidst Chinese Market Slowdown

Kering has reported a substantial decline in sales at Gucci, with like-for-like sales dropping by 25% in the recent quarter, indicating a deeper decline than previously observed. This marks the fifth consecutive quarter of revenue decline for Gucci, which significantly impacts Kering since Gucci constitutes about half of its revenues. The downturn reflects broader challenges in the luxury sector, particularly exacerbated by weak demand in the crucial Chinese market. Amidst these challenges, Kering has installed Stefano Cantino as the new CEO of Gucci in a bid to rejuvenate the brand. Kering’s shares have also suffered, dropping more than 40% this year, as the luxury group navigates through this volatile period.

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