Kering's Tough Start in 2024: Gucci's Struggles Lead to Significant Profit Warning

Kering, the French luxury conglomerate, is facing a challenging start to 2024, with a forecasted drop in first-half operating profit of 40-45% following an 11% decline in Q1 revenues. This downturn is largely attributed to disappointing sales at Gucci, despite ongoing efforts to revitalize the brand. Other brands under Kering like Saint Laurent also experienced sales drops, although the eyewear and beauty divisions posted gains. This performance contrasts with rivals like LVMH, highlighting the difficulties Kering faces in a sluggish luxury market, particularly impacted by soft demand in China and broader geopolitical tensions.

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