- Don-Alvin Adegeest |
Luxury brands are adjusting their quarterly and annual outlooks as the coronavirus continues to ravish the fashion industry across all sectors.
French luxury group Kering stated it expects a 15 percent comparable decline in its first quarter compared to 2019.
Currently the Group is observing encouraging signs in Mainland China, where the decline in store traffic, and hence in sales, is narrowing. By contrast, the North American and European markets are deteriorating, with second quarter revenue also expected to be sharply affected as tourism drops and spending declines.
In a statement Kering said it has implemented an initial action plan aimed at adapting its cost base and containing its working capital requirement. The Group is currently considering additional measures that can be activated to mitigate the dilution of its recurring operating margin throughout the year, while protecting its Houses’ market positions and preserving their growth potential and capacity to bounce back in the short and medium term.
Kering will release its first quarter 2020 revenue on April 21 after market close.
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