Kering Warns of Lowest Profit Since 2016 as Gucci Suffers

Kering SA warned that its annual profit will fall to the lowest level since 2016 as a slump in Chinese demand for luxury goods hampers a turnaround of the French fashion group’s biggest label, Gucci.

Kering’s recurring operating income this year could be around €2.5 billion ($2.7 billion), the company said Wednesday. That would be the lowest level in eight years and less than the €2.82 billion analysts were expecting.