Kering Facing Drop in US Consumption, CEO says

Gucci-owner Kering has seen a stark decline of demand for its luxury and fashion goods in the United States, its chief executive François-Henri Pinault told French senators at a parliamentary hearing on Tuesday.

“The drop in consumption, which has been going on for several weeks now, is quite strong,” Pinault said.

Kering last month reported weak first-quarter sales, dragged down by a 25 percent drop at Gucci.

By Tassilo Hummel; Edited by GV De Clercq

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Kering’s Woes Deepen as Gucci Sales Tumble 25%

Group revenues fell 14 percent in the first quarter as Saint Laurent and Balenciaga also suffered from the downturn in luxury demand.