The warning contrasts with that of its rivals LVMH and Hermès, whose sales have remained resilient.
The luxury market has grown over the last decade, but sales haven’t been as impressive in recent years.
Gucci is estimated to derive over a third of its sales from China, whose economy has been struggling.
Kering said in a statement that the profit warning “reflects a steeper drop in Gucci sales, especially in the Asia-Pacific region.” The firm plans to present its financial results on April 23.
Gucci accounted for two-thirds of the group’s operating profit last year. Other Kering brands include Yves Saint Laurent, Balenciaga, and Bottega Veneta.
Last month, Kering reported a 17% drop in net profit last year. Its shares have fallen more than 23% in the past year.
In comparison, its larger rival, LVMH, which owns Louis Vuitton, Moët & Chandon, and Hennessy, posted sales above expectations for 2023.
Hermes also celebrated its record annual sales last year with plans to reward all employees worldwide with a bonus.
While their results showed resilience in the luxury market, Gucci is known to target younger and aspirational buyers who are more vulnerable to economic pressures.
Last year, Kering changed Gucci’s top management by appointing Jean-François Palus as CEO and Sabato De Sarno as creative director.
The first items from their Ancora collection were available in mid-February.
The collection has been met with “very favorable reception,” according to Kering’s statement.
