As previously warned, Gucci had the largest decline in the group at 21% (18% on a comparable basis) to €2.08 billion in revenue for the quarter. Revenue for the brand’s directly operated store network was down 19% on a comparable basis with a particularly strong drop in the Asia-Pacific region. Wholesale revenue was down 7%.

Revenue dropped by 8% (6% on a comparable basis) for Yves Saint Laurent €740 million. Growth in Japan and North America kept the directly operated store network decline to 4% on a comparable basis. Wholesale revenue declined by 25%.

Bottega Veneta had revenue of €388 million in the first quarter, down by 2% reported and up 2% on a comparable basis. Directly operated retail network revenue was up 9% on a comparable basis while wholesale revenue declined by 25%.

Revenue from Other Houses was down 7% (6% on a comparable basis) to €824 million with an increase of 3% on a comparable basis for the directly operated retail network and a decline of 25% for wholesale revenue.

Looking forward, the group is now expecting a 40-45% decline in recurring operating income for the first half of the 2024 financial year.

Chairman and CEO François-Henri Pinault said: “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.”