Home Money Gucci owner Kering hit by slowing global luxury sales

Gucci owner Kering hit by slowing global luxury sales

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Star couple: Francois-Henri Pinault and Salma Hayek

Star couple: Francois-Henri Pinault and Salma Hayek

The owner of Gucci has reported a further drop in sales as the storm clouds gathering over the luxury goods industry continue to darken.

Sales at Kering, which also owns Boucheron and Balenciaga and is run by Francois-Henri Pinault, who is married to actress Salma Hayek, fell 11% to 3.8 billion pounds in the second quarter of the year.

The French group also reported a 42% drop in first-half profits to £1.3bn and warned of a 30% drop in the second half. The industry has been hit by a slowdown in demand in China and elsewhere.

“There was a deterioration in trends in June which continued in July,” said Deputy Director General Jean-Marc Duplaix.

The upgrade follows disappointing figures from rivals such as LVMH and Burberry.

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