Kering first-half revenues drop, H2 operating income to fall 30%

Gucci owner Kering tumbled on Thursday after it posted a drop in first-half revenues and warned that operating income would drop in the second half.

In the six months to 30 June, group revenue fell 11% on the same period a year earlier to €9bn. The company pointed to a "slowing market" in most regions except Japan.

"There was a marked deceleration in China, while trends did not improve greatly in North America and Europe," it said.

"In all of those markets, there was a growing divergence in performance between the various sector players."

Kering - which also owns Yves Saint Laurent and Bottega Veneta - said recurring operating income fell 42% in the first half to €1.6bn, in line with the guidance provided in the company’s first-quarter numbers.

The group said that "considering the uncertainties weighing on the evolution of demand from luxury consumers in the coming months", recurring operating income in the second half could be down by around 30% on H2 2023.

At 1140 BST, the shares were 7.2% lower at €279.10.