Kering stock falls, disappointment over Gucci sales – 04/22/2022 at 15:50


Gucci Kering 2 (photo credit: Flickr / )

April 22 (Reuters) – Kering PRTP.PA stock traded sharply lower on Friday after its first-quarter sales were released as the French group reported disappointing sales for its flagship Gucci due to store closures in China .

At 10:20 am, the action of the luxury group lost 4.8% to 526.1 euros, recording the largest drop in the CAC 40, which fell 1.17% at the same time.

Kering posted slightly better-than-expected first-quarter sales of 4.96 billion euros, but Gucci’s sales, up 13%, fell short of analysts’ forecasts at 18%.

“Gucci is an important brand in China where it is still considered ‘mass-market luxury’: it needs traffic to perform well,” says Jefferies.

“This is a blow,” adds the analyst, pointing out that 40% of Chinese stores are experiencing disruptions related to health restrictions.

“Despite the undemanding valuation, we expect Kering shares to come under even more pressure today,” JPMorgan said.

The impact was also felt on other stocks in the sector such as Burberry BRBY.L and Hermès HRMS.PA, down 3.1% and 2.7% respectively at 9:30 a.m., due to their high exposure to China.

(Report Clément Martinot, French version Augustin Turpin; editing by Kate Entringer)



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