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.

Swatch Group AG $UHR.SW, a renowned watchmaker, is currently facing substantial challenges, positioning it as one of the most shorted stocks in Europe. Recent reports indicate a significant decline in the company's operating profit, which plummeted nearly 75% over the past year. Additionally, there has been a notable drop in sales, decreasing by 12.2% when currency fluctuations are excluded. The primary driver behind these developments is a downturn in demand for luxury goods in China, a region that accounted for 27% of the company's sales last year.