Gucci Owner Kering Warns of Sales Hit Due to Coronavirus

(Bloomberg) -- Kering SA’s first-quarter sales will fall about 15% on a comparable basis as the coronavirus pandemic shuts stores and keeps luxury shoppers at home, the Gucci owner said.

The French fashion company said second-quarter revenue will be “sharply impacted” as the outbreak spreads across the world and gains intensity in Europe.

While Kering’s forecast was unsurprisingly gloomy, the first-quarter impact for its brands like Gucci and Saint Laurent seems to have been less than some rivals. Burberry Group Plc has said comparable retail store sales are down between 40% and 50% over the past six weeks, while Salvatore Ferragamo forecast a 25% to 33% decline in the first quarter.

A decline in store traffic is easing in China, whose consumers have driven growth in the luxury industry, Kering said, but other Asian markets are still struggling.

“The situation has substantially deteriorated in recent weeks in Western Europe and, more recently, North America,” the company said in a statement.

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