This content is not available in your region

Kering shares slump as Gucci shows signs of slowdown

Access to the comments Comments
Kering shares slump as Gucci shows signs of slowdown
FILE PHOTO: A view shows an advertising poster for the new high end jewellery Gucci store on Place Vendome in Paris, France, July 2, 2019. REUTERS/Regis Duvignau   -   Copyright  REGIS DUVIGNAU(Reuters)
Text size Aa Aa

PARIS (Reuters) – Kering’s shares <PRTP.PA> slumped on Friday as analysts honed in on signs of a slowdown at the French luxury group’s Gucci brand to knock down the stock from record highs reached earlier this year.

Kering shares were down 7.6% in early session trading, although the stock – which hit a record high in April – remains up around 14% so far in 2019.

Kering’s results late on Thursday showed a slower-than-expected rise in second-quarter sales at Gucci.

“Gucci’s slowdown in the USA exacerbated from 5% in the first quarter of 2019 to -2% in the second quarter,” wrote analysts at brokerage Bernstein.

“With this in mind, we expect the market will continue to wonder about the future ‘soft landing’ of Gucci, despite a very healthy margin improvement in the first half of 2019,” added Bernstein.

(Reporting by Sudip Kar-Gupta; Editing by Leigh Thomas)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.