Kering shares fall after Asia curbs sales growth at Kering's fashion brand Gucci
Reuters
Published Oct 20, 2021 08:11
Updated Oct 20, 2021 12:53
PARIS (Reuters) - Shares in French luxury goods company Kering (PA:PRTP) fell sharply on Wednesday, after Kering's star fashion brand Gucci grew sales by just 3.8% in the third quarter, missing analyst expectations.
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.
The fall in Kering also dragged down shares in its French rival LVMH (PA:LVMH), with LVMH shares falling 0.9 percent, while Hermes also fell 0.6 percent.
"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.
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Written By: Reuters
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