Gucci-owner Kering on Tuesday posted worse-than-feared second-quarter results and flagged ongoing geopolitical uncertainty as woes persist at the beleaguered luxury group.
Sales at the high-end fashion house dropped 15% year-on-year on a comparable basis to 3.7 billion euros ($4.27 billion), compared to the 3.96 billion euros forecast by LSEG analysts.
Gucci sales, which typically make up nearly half of total group revenues, plunged 25% over the quarter to 1.46 billion euros.
Chairman and CEO François-Henri Pinault acknowledged the results as disappointing, but noted ongoing efforts to course correct the struggling luxury giant.
“Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development,” Pinault said in a statement accompanying the results.
