Kering shares fall after Asia curbs sales growth at Kering's fashion brand Gucci
PARIS, Oct 20 (Reuters) – Shares in French luxury goods company Kering (PRTP.PA) fell sharply on Wednesday, after Kering’s star fashion brand Gucci grew sales by just 3.8% in the third quarter, missing analyst expectations. read more
Kering’s shares were down by 3.4 percent in early session trading, making it the worst-performing stock on France’s benchmark CAC-40 index (.FCHI).
“Gucci growth was disappointing, with retail sales +2% on a 2-year basis, decelerating from Q2 (+11%), negatively impacted by increased pandemic restrictions in APAC and a lack of product newness,” wrote JP Morgan in a research note.
Luxury goods groups have bounced back strongly from the fallout of the health emergency, lifted by pent-up demand for high-end wares as lockdowns ease across the world and consumers return to socialising.
However, shopping by travelling tourists – a key source of revenue for the sector – remains well below pre-pandemic levels.
Reporting by Mimosa Spencer, Marc Angrand and Piotr Lipinski;
Editing by Sudip Kar-Gupta
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