This is due to a slowing performance at the group’s top brand Gucci. The surprise announcement comes a month before Kering is due to publish its full Q1 earnings report.
“This performance primarily reflects a steeper sales drop at Gucci, notably in the Asia-Pacific region. Gucci comparable revenues in the first quarter are expected to be down by nearly 20% year-on-year,” Kering said in the statement.
Despite best efforts to turn the brand around, sales have continued to falter amid weakened demand, with a knock-on impact on group performance. Kering reported that sales were down 4% in the fourth quarter of 2023, lagging behind its rivals. For the 2023 full year, Kering’s revenue was down 2% to €19.6bn (£16.7bn).
Gucci creative director Sabato De Sarno’s first collection for the brand since his appointment in January 2023 is now rolling out in stores. “Early products, primarily ready-to-wear, from the Ancora collection have been on offer in selected Gucci stores since mid-February. The new collection, whose availability will gradually be ramped up over the coming months, is meeting with highly favourable reception,” the statement from Kering said.
Kering will release its full Q1 earnings report on 23 April.