Gucci growth slows on poor US demand, with Kering shares falling
Kering shares are still up more than 20% in 2019, but its Gucci and Bottega Veneta brands are seen as relatively weak spots
Paris — Kering shares retreated sharply on Thursday after signs of slowing growth at the French luxury group’s Gucci brand, particularly in the US. Analysts homed in on Gucci’s performance as one of the main reasons for the share price drop, after Kering’s first-quarter update released after Wednesday’s market close showed US growth cooling at Gucci, which accounts for some 60% of group sales. The stock, which had hit a record on Tuesday ahead of the update, was down 3%t by 9.25am GMT, lagging rivals such as Louis Vuitton owner LVMH, and Italian luxury jacket maker Moncler, which also traded lower. Gucci, with annual sales surpassing €8bn, has outperformed most of its peers in the past two years thanks to a flamboyant revamp under designer Alessandro Michele. That trend remained intact, with the brand posting first-quarter comparable sales growth of 20%, still higher than Vuitton and a touch above what some analysts had expected. But investors have grown accustomed to Gucci beating ...
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