Kering Faces Major Setbacks Amid Luxury Sector Slowdown

Kering warns of a substantial reduction in 2024 operating income due to weak demand in China, affecting brands like Gucci. Third-quarter revenue fell significantly, and further downgrades are expected. The luxury sector struggles, with Gucci undergoing major transformations under new leadership amid deteriorating market conditions.


Devdiscourse News Desk | Updated: 23-10-2024 22:53 IST | Created: 23-10-2024 22:53 IST
Kering Faces Major Setbacks Amid Luxury Sector Slowdown
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Kering, the French luxury goods conglomerate, has issued a stark warning regarding its financial outlook for 2024, expecting operating income to nearly halve amid weak Chinese demand.

The disappointing forecast comes after a larger-than-anticipated 16% drop in third-quarter revenue, reflecting ongoing challenges for Gucci, the group's main label.

The luxury sector faces a slowdown, with investors apprehensive about declining Chinese consumer confidence and high-end fashion demand, posing significant challenges for Kering's strategy.

(With inputs from agencies.)

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