Gucci Sales Fall 8% as Kering Prepares Turnaround Plan
Gucci reported an 8% drop in quarterly sales as the Middle East conflict hindered Kering's recovery efforts. CEO Luca de Meo now prepares to unveil a new growth strategy.
Gucci's sales decline continued in the first quarter, highlighting the challenges facing parent company KERING as it attempts a strategic turnaround. The Italian flagship brand reported an 8% drop in revenue, totaling 1.35 billion euros ($1.59 billion), which fell slightly short of analyst expectations of 1.37 billion euros. This performance marks the 11th consecutive quarterly decline for the fashion house, which is controlled by the Pinault family based in France.
The results arrive just days before CEO Luca de Meo is scheduled to present a new strategic plan for the group. Investors are closely watching for signs of recovery, though most analysts do not anticipate a return to growth until the autumn. The group's stock has faced pressure, declining approximately 8% since the start of the year.
