Kering Warns Profit to Tumble Following Gucci Woes in China
- First-half recurring operating income set to fall by up to 45%
- Company’s biggest label, Gucci, is undergoing a turnaround
Kering has been trying to turn around Gucci, which accounts for more than two-thirds of its operating profit.
Photographer: Chan Long Hei/BloombergKering SA warned that profit will plunge in the first half of the year as the crisis at Gucci, its biggest brand, deepens.
Recurring operating income will drop between 40% and 45% in the first six months, Kering said in a statement Tuesday. That’s after comparable sales at Gucci tumbled 18% in the first quarter on slack demand in China.