Navigating Rough Waters: Kering’s Profit Warning Signals Challenges in Luxury Industry

Kering, a prominent player in the luxury fashion industry, has issued a profit warning, forecasting a 30% decrease in operating profits for the latter half of the year after a 42% decline in the first half. This comes as the group's star brand, Gucci, reported a significant 19% drop in organic sales in the second quarter. Despite these challenges, Kering is actively pursuing a turnaround strategy, involving cost-cutting measures and the introduction of new product lines, particularly at Gucci. Meanwhile, other brands like Bottega Veneta are experiencing growth, highlighting a mixed performance across the group. The group is adapting its strategies to ensure sustainability and growth amid a volatile global market.

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