PARIS, April 18 (Reuters) - Kering’s shares fell sharply on Thursday after signs of a slowdown at the French company’s Gucci brand offset a broader rise in group sales.
Kering was down 5.3 percent in early session trading.
At group level, Kering reported a 21.9 percent rise in first-quarter revenue to 3.8 billion euros ($4.3 billion) late on Wednesday.
However, traders and analysts honed in on a slowdown at the pace of growth at Gucci as one of the main reasons for Kering’s share price drop, along with an element of profit-taking.
“There were two dark spots in this release - Gucci U.S. decelerated to 5 percent organic sales growth and Bottega Veneta (BV) was back down at -9 percent, down more than in previous quarters after a short-lived improvement in Q4 18,” wrote JP Morgan in a note.
“The BV turnaround will indeed take time in our view, if only owing to its high exposure to carryovers,” it added.
$1 = 0.8852 euros Reporting by Sudip Kar-Gupta, Sarah White and Laetitia Volga; Editing by Jan Harvey