PARIS (Reuters) - Kering (LON:0IIH)'s shares slumped on Wednesday, after the French luxury goods company warned it expected a 40% to 45% plunge in first-half operating profit.
Kering shares were down 8.5 percent in early session trading, dragging down slightly the shares of its French rivals LVMH (EPA:LVMH) and Hermes.
Late on Tuesday, Kering warned of the likely drop in first-half operating profit as it also reported that first-quarter sales had declined as wealthy shoppers curbed spending on products from its star label Gucci.
Kering's sales for the three months ending in March were down 10% on a comparable basis at 4.5 billion euros ($4.8 billion).
"We think it is too early to turn more constructive on this turnaround journey," wrote analysts at JP Morgan, which also cut its price target on Kering shares.
($1 = 0.9352 euros)