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Gucci owner Kering says outlook unclear as virus hammers sales

Gucci owner Kering says outlook unclear as virus hammers sales

French luxury group Kering said secondquarter 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.

  • Reuters
  • Last Updated: July 28, 2020, 9:26 PM IST
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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.”

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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  • First Published: July 28, 2020, 9:26 PM IST
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