After having warned on March 19 that it anticipated a drop in its turnover “of around 10%” in the first quarter over one year, penalized by the difficulties of its flagship brand Gucci, Kering confirmed this Tuesday a difficult start to the year. Engaged in a vast repositioning of its flagship brand, which accounts for nearly half of its sales and two-thirds of its profits, the group revealed an overall turnover down 10% over the first three months of the year. year, at 4.5 billion euros. Pulled down by difficult market conditions in the Middle Kingdom, Gucci sales fell by 18% over the period, falling to 2.1 billion euros.

Regarding the outlook for the end of the year, the group specified that it would continue to invest heavily in its brands, but also in their repositioning and moving upmarket. Particularly on Gucci and Yves Saint Laurent (-6% in the first quarter), via a takeover of their distribution. Long-term work that has a significant impact on operational performance. “Given the deterioration in turnover trends, the group now anticipates a decline in its current operating income for the first half of 2024 of around 40 to 45% compared to the first half of 2023,” the company said on Tuesday evening. group in a press release. Since the start of the year, Kering shares have fallen by around 12% on the Paris Stock Exchange.