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PARIS, France — Kering SA reported a worse-than-expected slump in sales at the Gucci luxury-goods brand amid a slowdown in Asia, a setback to efforts to revive its biggest brand.
Comparable sales at the unit fell 7.9 percent in the first quarter, Paris-based Kering said Tuesday in a statement after markets closed, missing the median estimate for a 4 percent drop. Group sales met estimates, helped by a weaker euro and a stronger-than-anticipated performance by sportswear maker Puma.
Kering flagged in February that 2015 would be a year of transition for Gucci as it takes steps to restore growth at the business. The effects of changes at Gucci, which include new management, will be seen in the second half of the year, Chief Executive Officer Francois-Henri Pinault said at the time.
“Our priority today is to give our flagship luxury brand fresh impetus and we are confident in the success of the action plans initiated by the new teams,” Pinault said in Tuesday’s statement. “We expect a gradual improvement in our performances throughout the year.”
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Group revenue rose 11 percent to 2.65 billion euros ($2.85 billion), Kering said. Analysts predicted 2.64 billion euros, according to the median of estimates compiled by Bloomberg.
On a comparable basis, sales fell 0.6 percent, trailing estimates for 1.8 percent growth.
By Andrew Roberts; editors: Matthew Boyle, Paul Jarvis.
