Shares in Kering tumbled more than 10 per cent on Friday (Oct 23), after the French luxury group reported a fall in third-quarter sales at its flagship Gucci brand.
Revenues at Gucci, its top brand by sales and profits, fell 6 per cent in the quarter, weighed down by weak demand in mainland China and Japan. Analysts had forecast a drop of 2.8 per cent.
Kering shares fell 10.7 per cent in early trading in Paris, as the results, released after the market closed on Thursday, threatened to delay chief executive Luca de Meo’s efforts to revive the struggling luxury group.
Group sales fell 1 per cent on an organic basis in the three months to the end of September, compared with the same period a year ago, to a total of €3.3 billion (US$3.69 billion; S$4.72 billion), roughly in line with analysts’ expectations.