PARIS/MILAN French luxury group Kering said second-quarter comparable sales had plunged by 43.7% due to the coronavirus pandemic, adding it could not provide a forecast for the second half of the year despite an encouraging recovery in Asia.
The sales drop at the conglomerate that owns Gucci was a touch better than analysts’ expectations, with those at UBS citing a consensus for a 46% fall in comparable sales.
Rival LVMH managed to limit its own sales decline to 38%, though its operating margins were hit hard, limping in at 9% while Kering’s shrank to 17.7%.
“The lack of visibility about how the worldwide personal luxury goods market will evolve in the next few months makes it impossible to forecast the group’s second-half sales with any sufficient degree of reliability,” Kering said in a statement.
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“However, the loss in revenue experienced in the first six months of the year should not be offset in the second half.”
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