Gucci sales to plunge 20% in first quarter on Asia slowdown

Controlled by the billionaire Pinault family, Kering has struggled to keep up with rivals like LVMH Moet Hennessy Louis Vuitton and Hermes International as luxury sales have come off the boil over the past year, especially in China.

Kering CEO Francois-Henri Pinault and his wife actress Salma Hayek. Pic: AP Photo/Thibault Camus.

Kering warned that sales at Gucci have plunged about 20% in the first quarter due to a steeper-than-expected decline in the Asia-Pacific region, widening the gap between the French luxury company and its stronger rivals.

Kering’s American depositary receipts tumbled 9% late Tuesday after the company’s unscheduled update. The fashion group has been trying to revitalise Gucci, the Italian label that accounts for about two-thirds of profit, without success.