Kering's Revenue Falls, Hit by Gucci Turnaround

By Andrea Figueras

Gucci owner Kering said first-half revenue and earnings fell as its flagship brand pushed ahead with a turnaround at a time the luxury industry is contending with a spending downturn in China.

The French luxury-goods group--home to other brands such as Balenciaga and Yves Saint Laurent--booked revenue of 9.02 billion euros ($9.79 billion), down 11% both as reported and on a comparable basis compared with the year-earlier period. The result was below analysts' forecasts of EUR9.13 billion, according to consensus estimates provided by Visible Alpha.

The company said it anticipates recurring operating income in the second half to be down by around 30% compared with the year-earlier period, on the back of uncertain demand trends for luxury goods in the coming months and a slowdown during the first half.

"In a challenging market environment, which adds pressure on our top line and profitability, we are working assiduously to create the conditions for a return to growth," Chairman and Chief Executive Francois-Henri Pinault said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 24, 2024 11:58 ET (15:58 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.