Kering shares slump after luxury company warns of H1 operating profit drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
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Source: Yahoo Finance
- Kering's Shares Slump: Kering, a French luxury goods company, saw its shares drop significantly after warning of a 40% to 45% decline in first-half operating profit.
- Impact on Rivals: The decline in Kering's shares also affected the shares of its French competitors LVMH and Hermes, albeit to a lesser extent.
- Sales Decline and Reasons: Kering reported a 10% decrease in sales for the first quarter, attributing it to reduced spending by affluent customers on products from its popular brand Gucci.
- Analyst Outlook: JP Morgan analysts expressed caution about Kering's turnaround prospects and lowered their price target on the company's shares.
- Financial Figures: Kering's sales for the three months ending in March amounted to 4.5 billion euros ($4.8 billion), reflecting the challenging market conditions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
