Consumer

Tougher Times for Luxury Brands Separate Winners From Losers

  • Kering’s Gucci, Balenciaga suffer while Hermes shows dominance
  • Some quieter brands reap the benefits amid uncertain times
A Gucci Spa store in Hong Kong, China.Photographer: Paul Yeung/Bloomberg
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The luxury-goods industry’s first slowdown since the pandemic is separating the winners from the losers.

Kering SA warned that its flagship Gucci brand will see a drop in profitability this year, with no sign of a rebound in 2024. The Italian label is getting hit harder than rivals as internal turmoil worsens the effect of weakening global demand.