1106 GMT - Kering's flagship brand Gucci hasn't reached an inflection point yet and momentum is still worsening, Stifel's Rogerio Fujimori writes in a note. The French luxury group, which is trying to revamp its star label, said its operating profit would nearly halve this year after posting third-quarter sales below analysts' forecasts. Following LVMH's results last week, Kering's miss and warning don't surprise, given the significant deterioration in the Chinese market, the analyst says. Gucci achieved quarterly revenue of 1.64 billion euros, 26% lower on year and below analysts' forecasts. "Gucci is not narrowing the top-line performance gap with the rest of the sector yet in a challenging external environment," they say. Shares are 2.1% higher at 235.75 euros. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
October 24, 2024 07:07 ET (11:07 GMT)
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