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IPFS News Link • Pandemic

Luxury Hard Landing? Gucci Owner Blames Covid-19 Virus For Deteriorating Outlook

•, by Tyler Durden

Traders have since faded the initial pop, due mostly to the company's warning that the virus outbreak in China could damage sales in 1Q20 for its star brand Gucci, reported Reuters.

Kering said Gucci's success is partly because of the robust Chinese market, with much of the economy shut down, and consumption collapsed, this could have a significant impact on "consumption trends and tourism flows, and their ability to affect economic growth."

Kering's CFO Jean-Marc Duplaix said the company "remained very confident about its growth potential in the medium and long term" despite the world's second-biggest economy shut down, 400 million people in quarantine, factory hubs on idle, and transportation networks froze.