On Tuesday, the French luxury group Kering warned that, according to its estimations, the consolidated revenue for the first quarter of 2024 will likely drop by roughly 10%.
Kering explains that the decline is due to a drop in sales at Gucci, particularly in the Asian and Pacific markets.
By Wednesday morning CET, Kering's shares were down by more than 14%.
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Other European companies behind luxury and fashion brands also saw their stocks tumble following Kering's downturn.
LVMH, the conglomerate behind subsidiaries such as Louis Vuitton, Tiffany & Co., and Sephora, was down a little over 2%. Burberry was down 3.86%, and Dior had declined by 2.22% as of 2 PM CET, Wednesday.
Kering is a multinational corporation that specializes in luxury goods. Based in France, the company owns multiple European fashion brands, such as Gucci, Alexander McQueen, Balenciaga, and Yves Saint Laurent.