Across the Channel, Gucci-owner Kering (LON:0IIH) has delivered a profit warning due to slumping sales of its premier luxury handbag.
Revenue for the first quarter of 2024 was down 11% as reported and down 10% on a comparable basis to €4.5 billion.
Guuci sales plummeted 21%, Yves Saint Laurent was down 8% and Bottega Veneta fell just 2%.
Chief executive François-Henri Pinault did not beat around the bush.
“Kering’s performance worsened considerably in the first quarter. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline.
“In view of this revenue decline, together with our firm determination to continue investing selectively in the long-term appeal and distinctiveness of our brands, we now expect to deliver sharply lower operating profit in the first half of this year.
“All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.”
Kering shares were kicked 9.5% lower.
FTSE 100 touches all-time high again
The blue-chip index touched another all-time high again this morning, marking the third straight day of records.
Reckitt Benckiser (LON:RKT) plc is top of the leagues after posting its first-quarter trading update, with the big-cap miners offering a substantial lift.
Glencore (LON:GLEN), Antofagasta (LON:ANTO), Rio Tinto (LON:RIO) and Anglo American (JO:AGLJ) are all up more than 1%, as are BAE Systems (LON:BAES), BP (LON:BP) and Scottish Mortgage.
Tesla to rally when US trading starts
Tesla Inc (NASDAQ:TSLA) shares look set to bounce 13% higher when US markets open later.
Shares surged after hours as it told investors it plans to fast-track the launch of new affordable EVs, despite its first-quarter earnings missing Wall Street estimates.
Elon Musk’s EV giant has modified its strategy, opting to introduce “new models” by early 2025 using its existing production capabilities, diverging from its previous plans to develop an entirely new car range priced at $25,000.
For the first quarter, Tesla posted a 9% year-over-year drop in sales to $21.3 billion, attributed to a reduced vehicle average selling price and a decline in vehicle deliveries.
“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex-efficient manner during uncertain times,” said the group.
Jet2 expecting stronger summer ahead
One of the junior market’s largest members Jet2 said demand for the summer is stronger than last year, signalling a continuation of the post-Covid travel boom.
Bookings for package holidays are up by 13%, Jet2 said in a statement, while flight-only passengers have increased by 18%.
This is as the airline’s capacity is 12.3% higher than a year ago at 17.1 million seats, with the summer season 55% sold so far, leaving load factors 1% ahead of this time last year.
