Luxury group Kering Group is expecting Gucci sales to slump as much as 20 per cent year on year during the first quarter despite the company’s efforts to revitalise the label.
The group said Gucci – which accounts for more than half of its turnover – has experienced a steep sales decline, especially in the Asia Pacific region. Kering also estimated its group consolidated revenue will decline 10 per cent for the period.
The first collections by creative director Sabato de Sarno have only been on offer in stores since the middle of last month. The company said the new collection will gradually be ramped up over the next months and is “meeting with highly favourable reception”.
The sudden announcement comes a month ahead of its first-quarter earnings report.
Kering Group’s revenue was down 4 per cent to US$21 billion for last year, with Gucci’s turnover down 2 per cent for the year and 4 per cent for the fourth quarter. Its sister brands, Saint Laurent and Bottega Veneta, also experienced year-on-year sales drops.
