PARIS, Oct 24 Reuters Shares in Gucciowner Kering rose on Thursday, shrugging off the French luxury goods company39;s warning that 2024 operating income would almost halve to its lowest in years due to weak demand in China.
Kering shares were up 0.5 at 0729 GMT, after positive results from rival Hermes helped lift the broader luxury sector.
The owner of fashion brands Saint Laurent, Balenciaga and Bottega Veneta also posted a largerthanexpected 16 drop in thirdquarter revenue.
The company39;s stock has taken a battering this year, sliding more than 40, making it the worst performer in the luxury sector. One trading source said the guidance cut did not come as a surprise and bad news was priced in.
Kering are controlling their controllables e.g. cost control, efficiency focus, store optimisation in a difficult luxury environment, however relative performance is below average and FY25E margin visibility is low, analysts at RBC said.
Reporting by Benoit Van Overstraeten in Paris, Danilo Masoni in Milan and Amanda Cooper in London; editing by Makini Brice and Jason Neely
Source Reuters