Luxury brand Gucci-owner Kering share price hits a seven-year low after weak forecast

Luxury goods

Kering, the owner of Gucci, experienced a drop in its share value on Thursday 25th July 2024 following the announcement of a significant revenue decrease in the first half of the year, coupled with a subdued outlook for the latter half.

Kering’s shares fell by up to 9% as the markets opened, trading at levels not seen since August 2017.

Kering one year share price chart 24th July 2024 (am)

Kering one year share price chart 24th July 2024 (am)

The luxury group announced late Wednesday 24th July 2024 that its revenue dropped by 11% in the first half of 2024, in comparison to the same period the previous year. The company reportedly attributed the decline to a slowing market in most regions, with the exception of Japan.

Kering are not alone in suffering a drop in share value, as luxury brands including LVMH and Burberry also experienced weaker trade declines noted in recent reports.

A deceleration of luxury purchases in China is cited as one of the major reasons for the declines.

U.S. stocks slip as Nasdaq tumbles for worst day since 2022 – Tesla and Alphabet fall

Stocks in the red

Stocks sold off Wednesday 24th July 2024, blighted by underwhelming reports from Tesla and Alphabet – leading the Nasdaq Composite and the S&P 500 to post their worst sessions since 2022.

The S&P 500 index dropped to closing at 5427, while the tech-heavy Nasdaq slid around 3.65% to end at 17342. The Dow Jones Industrial Average shed 504 points closing at 39853.

Nasdaq Comp one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024

Shares of Google parent company Alphabet fell 5% for their biggest one-day drop since 31st January, when they dropped 7.5%. Although Alphabet reported good numbers, YouTube advertising revenue came in below the consensus estimate causing share to dip.

Alphabet one day chart 24th July 2024

Tesla shares declined around 12% – their worst day since 2020 – on weaker-than-expected results and a 7% year-on-year drop in auto revenue.

Tesla one day chart 24th July 2024

Nasdaq Comp one day chart 24th July 2024