Shares of French conglomerate Kering $KER.PA nosedived 5.42% at Thursday’s market open, following a disappointing Q1 sales report that fell short of analyst expectations. The group’s annual revenue dropped by 14%, while its flagship label, Gucci, faced an even steeper decline—down 25% year-on-year.
Recent reports from Kering SA $KER.PA indicate challenging times for Gucci, one of the leading players in the luxury goods industry. This article analyzes the reasons behind the sales decline, the consequences for Kering, and the overall state of the luxury fashion segment.
In the fashion world, each appointment can turn into a significant event, and the recent choice of Demna Gvasalia as the creative director of Italian brand Gucci by Kering SA has sparked much discussion. This decision, while bold, raises questions about Gucci’s future and its position in the fashion industry.
On Friday, October 6, 2023, Kering experienced a significant decline in its stock market performance, losing around $3 billion after appointing designer Demna as the new chief designer for Gucci. This decision sparked widespread discussions among fashion experts and analysts, given Gucci's longstanding adherence to classic and elegant styles.
