Paris, France – French luxury group Kering said comparable sales in the second quarter were down 43.7 percent due to the coronavirus pandemic, adding that despite an encouraging recovery in Asia, it was not forecast for the second half of the year could yield.
Sales are declining at the owner-owned conglomerate Gucci was slightly better than analysts’ expectations, while those at UBS cited a consensus about a 46 percent drop in comparable sales.
Rival LVMH managed to limit its own sales decline to 38 percent, although operating margins were hit hard, with a 9 percent cap while Kering’s shrank to 17.7 percent.
“The lack of insight into how the global personal luxury goods market will evolve in the coming months makes it impossible to predict the group’s sales for the second half of the year with sufficient reliability,” Kering said in a statement.
“However, the loss of sales in the first six months of the year should not be offset in the second half.”
By Silvia Aloisi; editor: Sarah White