PARIS – Kering issued a profit warning Tuesday ahead of the release of its first-quarter results.
Despite bracing for another year of financial pain, particularly in the first half of 2024, the luxury group expects its consolidated revenue for the period to decline “by approximately 10 percent on a comparable basis” against last year’s figures, Kering said in a statement.
It attributed this change primarily to a steeper than expected drop in sales at Gucci, notably in the Asia-Pacific region, with the Italian brand’s comparable revenue expected to be down by 20 percent year-on-year.
Initial deliveries of the “Ancora” collection, in stores since mid-February, are “meeting with highly favorable reception,” Kering added.
Also factoring into the reported revenue is the combination of Creed’s consolidation on a full quarter to positive effect and a negative foreign exchange impact. These are estimated as a 1-to-2 percent contraction.
Kering will release its first quarter revenue after the stock market closes on April 23.