Gucci blames US for sales drop

Gucci's is blaming a drop in demand in the US for a 42% fall in profits.

First-quarter net income fell to €35.4m from €61.1m.

Sales fell 1.5% to €605m.

The company reiterated this year's outlook for sales of around €2.65bn, and earnings per share of between 2.60 euros and 3 euros.

Chief executive Domenico De Sole said: "The trading environment in the first quarter was characterized by depressed levels of international travel and tourism, and weak consumer spending in the United States and Europe.

"These are trying and uncertain times and consequently we have to be cautious about the rest of the year."