Luxury stocks tumble as Gucci warns of steep sales drop on China weakness

Luxury stocks fell sharply after Gucci owner Kering warned of an almost 20% drop in Gucci sales, especially in China. Companies like LVMH and Richemont also declined.
The luxury sector is seeing weaker demand after a bumper few years post-pandemic, especially in China where consumer sentiment has soured.
Kering said overall comparable sales will fall 10% in Q1, with the Asia-Pacific region seeing a steep decline.
Analysts say the warning raises worries about consumer spending and China’s economy amid deflation and a property market slump.
Kering has brought in new management at Gucci, its biggest brand accounting for over half its revenue, and recently released part of a new collection seeing strong reception.