Gucci sales to fall by 20% due to Asia slowdown

By Mariko Hiya

Business writer

According to user Kering, Gucci’s Paris-based business, sales are projected to decline by 20 % in the first quarter as a result of a downturn in Asia.

The alert contrasts with LVMH and Hermès, both of which have strong income records.

Although revenue have decreased significantly in recent years, the leisure industry has grown over the past ten years.

More than a third of Gucci’s profits are thought to be coming from China, whose business has been struggling.

The profit warning, according to Kering, “reflects a rougher sales decline at Gucci, particularly in the Asia-Pacific place.” The business is scheduled to release its economic effects on April 23.

Last month, Gucci accounted for two-thirds of the group’s operating income. Kering’s different brands include Yves Saint Laurent, Balenciaga and Bottega Veneta.

Kering reported last month that its net income for the previous year had fallen by 17 %. Over the past month, its stocks have fallen by more than 23 %.

In contrast, its bigger enemy LVMH, which owns Louis Vuitton, Moët &amp, Chandon and Hennessy, posted higher- than- expected revenue for 2023.

Hermes also planned to give a bonus to all employees abroad as a result of its record-breaking quarterly sales last year.

Gucci is known to targeted younger, ambitious customers who are more susceptible to economic pressures, despite their results demonstrating resilience in the luxury market.

By appointing Jean-François Palus as Gucci’s CEO and Sabato De Sarno as its artistic director, Kering made a change to the company’s top management next year.

The second items from his Ancora series were made public in the middle of February.

The series has been met with a “highly advantageous reception”, Kering’s speech said.