Kering shares slump after luxury company warns of H1 operating profit drop
3:50 am Wednesday, April 24th, 2024
PARIS (Reuters) – Kering’s shares slumped on Wednesday, after the French luxury goods company warned it expected a 40% to 45% plunge in first-half operating profit.
Kering shares were down 8.5 percent in early session trading, dragging down slightly the shares of its French rivals LVMH and Hermes.
Late on Tuesday, Kering warned of the likely drop in first-half operating profit as it also reported that first-quarter sales had declined as wealthy shoppers curbed spending on products from its star label Gucci.
Kering’s sales for the three months ending in March were down 10% on a comparable basis at 4.5 billion euros ($4.8 billion).
“We think it is too early to turn more constructive on this turnaround journey,” wrote analysts at JP Morgan, which also cut its price target on Kering shares.
($1 = 0.9352 euros)
(Reporting by Mimosa Spencer; Editing by Sudip Kar-Gupta)
