Shares in Gucci owner, Kering, sink after profit warning
French luxury group Kering plunged 14% at the start as it warned that Gucci sales look set to fall 20% year-on-year in Q1.
(AI Video Summary)
Kering
The stock price of the French luxury goods group Kering, the owner of Gucci, has taken a hit recently. In a video released last night, it was revealed that Gucci's profits have significantly dropped, causing investors to sell off their stock. You can see this decline reflected in the share price chart, which shows a pattern called "double top" and a drop below the expected level. As a result, the stock price is now back to where it was in January.
This profit warning is uncommon and it is expected that the overall revenues of the group will drop by 10 percent for the first three months of this year. Kering is set to announce its revenue for the first quarter of 2024 on April 23rd, which will shed more light on the situation. However, the decline in revenue is mainly due to Gucci, with sales plunging by a staggering 20 percent in the first quarter. One of the main reasons for this decline is the ongoing slump in Asia, which is affecting the fashion brand.
Kering's stock price
All in all, the decline in Kering's stock price due to the loss of Gucci's revenue is causing concern among investors. The profit warning and the projected drop in group revenues indicate potential challenges for the luxury goods group in the first quarter of 2024. Investors are eagerly waiting for the release of the first quarter revenue report to get a clearer idea of the situation and how it will affect Keuring's future performance.
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