Kering shares drop as Q3 sales fall short of expectations By Investing.com

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<p>In a disappointing turn of events for <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Kering </span></span> (EPA:), the parent company of luxury brands such as Gucci, Yves Saint Laurent, and Bottega Veneta, its shares have fallen to their lowest point since March 2020. This comes as a result of Q3 sales falling short of consensus expectations. The company&#8217;s stock has declined by over 18% year-to-date (YTD), a stark contrast to the gains seen in 40 and indices.</p>
<p>Kering reported a Q3 revenue of €4.46 billion ($4.72 billion), marking a 9% decrease from the previous year&#8217;s €5.14 billion. Among its brands, Gucci&#8217;s revenue fell by 7%, while Yves Saint Laurent and Bottega Veneta reported sales decreases of 12% and 7% respectively. Other Kering houses also experienced a significant slump, with a 15% drop in comparable revenue.</p>
<p>Analysts at Jefferies highlighted the potential impact on Gucci&#8217;s profit margins due to a brand overhaul and noted that the weakness goes beyond its star brand. The luxury industry faces challenges from inflation, high interest rates, China&#8217;s economic issues, and a fading post-pandemic boom in luxury goods spending.</p>
<p>This downturn in performance is an indicator of the broader challenges faced by the luxury goods market amidst macroeconomic pressures. It remains to be seen how Kering will navigate these challenges in the upcoming quarters.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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<br /><a href="https://www.investing.com/news/stock-market-news/kering-shares-drop-as-q3-sales-fall-short-of-expectations-93CH-3208386">Source link </a></p><p>The post <a href="https://forextraderhub.com/kering-shares-drop-as-q3-sales-fall-short-of-expectations-by-investing-com.html">Kering shares drop as Q3 sales fall short of expectations By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>