Gucci owner Kering halts spending in China amid coronavirus fears
Kering, one of the world’s largest luxury conglomerates, is temporarily shuttering stores in China and cutting back on ad spending in the region amid coronavirus fears.
The French company — which owns Gucci, Saint Laurent, and Balenciaga, among others — has reported a “sharp drop” in traffic and sales in China.
Despite the cutbacks, Kering chairman Francois-Henri Pinault says he expects the Chinese market to rebound strongly once the health scare is over.
Gucci, which is Kering’s biggest brand and brings in 83% of the conglomerate’s recurring operating income, beat sales expectations in the fourth quarter of 2019.
Business Insider