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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kering | EU:KER | Euronext | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-8.30 | -2.52% | 321.70 | 321.60 | 321.70 | 323.80 | 319.50 | 322.65 | 43,816 | 10:25:15 |
By Adria Calatayud
Shares of Gucci owner Kering slid to the lowest level since March 2020 after the company reported third-quarter sales that slightly missed consensus expectations as a postpandemic boom in luxury-goods spending fizzles.
At 0806 GMT on Wednesday, shares in Kering fell 3.6% to EUR392.80, falling to their lowest level since March 2020, at the height of the pandemic. This took the stock's year-to-date fall to more than 18%, against a 5.8% rise in France's CAC 40 blue-chip index and a 1.9% gain in the pan-European Stoxx Europe 600.
The French luxury group, which also owns Yves Saint Laurent and Bottega Veneta among other brands, reported a fall in revenue to 4.46 billion euros ($4.72 billion) for the third quarter from EUR5.14 billion a year before. On a comparable and constant-currency basis, Kering's revenue fell 9%.
Analysts polled by FactSet had expected sales of EUR4.52 billion.
Gucci revenue fell 7% on a comparable basis, while Yves Saint Laurent and Bottega Veneta saw comparable sales fall 12% and 7%, respectively, Kering said. Comparable revenue at the group's other houses was down 15%, it said.
Kering's quarterly sales were as labored as feared, with trends consistent with what larger peer LVMH Moet Hennessy Louis Vuitton reported earlier this month, Jefferies analysts said in a research note.
The company has signaled that Gucci's profit margins will take a hit as the brand undergoes a turnaround, but the update pointed to weakness extending beyond its star brand, the Jefferies analysts said.
After years of strong results, many luxury-goods companies have been grappling with weakening demand for their products as inflation and high interest rates hurt consumer spending and China's economic woes add to the challenges facing the industry.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 25, 2023 04:22 ET (08:22 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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