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)
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.