The future of the luxury fashion sector is clouded by the lack of certainty provided by sales updates from Europe’s major luxury brands regarding the recovery of Chinese demand for high-end fashion.
In addition to its difficulties in turning around the star brand Gucci, Kering warned on Tuesday that its first-half profit would plummet sharply. It also noted low demand in Asia, and China in particular. This caused its stock to plummet to all-time lows on Wednesday.
The first quarter’s revenue decline for Italian luxury group Ermenegildo Zegna was mostly caused by a drop in sales of its Thom Browne brand in the Greater China area.
The family-run Prada company in Italy was an exception, reporting strong growth in Asia and a soaring demand for its Miu Miu fashion line.
