Kering shares slump after Gucci results
Could Gucci be losing its glow?
The iconic Italian fashion house's sales grew by just 3.8% in the third quarter, missing analyst expectations.
The disappointing result led to a slump in shares in its owner, French luxury goods giant Kering on Wednesday (October 20).
Its shares were down by more than 3% in early trading.
The fall in Kering also dragged down shares in its French rivals LVMH and Hermes.
Luxury goods sales have bounced back strongly from the global health crisis as lockdowns ease and consumers return to socializing.
However, shopping by traveling tourists - a key source of revenue for the sector - remains well below pre-crisis levels.
Gucci, which accounts for more than half of Kering's annual sales, has been losing steam compared to some rivals after years of stellar growth.
Sales at Kering's smaller fashion labels Yves Saint Laurent and Bottega Veneta grew briskly over the quarter, led by double-digit growth in North America and Europe.
