Gucci’s Steep Sales Decline Throws Spotlight on China 

28 March 2014, Switzerland, Basel: View of the Italian fashion brand Gucci at the Baselworld international watch and jewellery fair in Basel. (dpa)
28 March 2014, Switzerland, Basel: View of the Italian fashion brand Gucci at the Baselworld international watch and jewellery fair in Basel. (dpa)
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Gucci’s Steep Sales Decline Throws Spotlight on China 

28 March 2014, Switzerland, Basel: View of the Italian fashion brand Gucci at the Baselworld international watch and jewellery fair in Basel. (dpa)
28 March 2014, Switzerland, Basel: View of the Italian fashion brand Gucci at the Baselworld international watch and jewellery fair in Basel. (dpa)

Shares of Kering are expected to open down on Wednesday, after the company warned first quarter sales at its star label Gucci would drop by around 20% due to weakness in Asia.

The warning underscores the challenge Kering faces as it seeks to reignite sales momentum at Gucci, which accounts for half of group sales and two-thirds of profit, while navigating economic headwinds in key markets - especially China.

The label is undergoing a design overhaul under the creative direction of Sabato de Sarno as it seeks to regain ground lost to rivals like LVMH's Louis Vuitton and Dior in recent years.

The group's forecast sales decline of around 10% for the first three months of the year is significantly worse than consensus expectations for 3% drop.

The trading update, which comes as Gucci's new designs trickle into stores, is a sign that the more classic, legacy products such as leather handbags the label has emphasized as it moves upmarket, are not resonating with consumers, said James Grzinic, an analyst with Jefferies.

An "encouraging" reception for the new designs is "dwarfed by that tough headwind," said Grzinic.

De Sarno's sleek, pared-back and sensual styles have marked a departure from the eccentric, flamboyant looks associated with those of his predecessor, Alessandro Michele. New brand signatures include chunky loafers, mini shorts and glossy Jackie handbags.

Analysts at Bernstein recently flagged De Sarno's February runway show in Milan - his third - as generating "over-archingly positive" industry and social media feedback.

But the jury is still out on whether the Chinese will take to the "Sabato De Sarno quiet luxury," said Bernstein's Luca Solca.

Beyond the challenges at Kering, analysts flagged the update as a potential drag on the high-end sector, with Citi calling it "a rather worrying signal."

Expectations for a strong rebound in China have been dashed by the country's property crisis and high youth unemployment. Consultancy Bain forecasts mid-single-digit growth for China's luxury market this year, after 12% growth in 2023.



It’s Met Gala Time! Get Yourself Suitable with This Guide on What to Expect

Met Gala celebrity chair Lewis Hamilton speaks at the Metropolitan Museum of Art's Costume Institute during a press conference October 9, 2024. (AFP)
Met Gala celebrity chair Lewis Hamilton speaks at the Metropolitan Museum of Art's Costume Institute during a press conference October 9, 2024. (AFP)
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It’s Met Gala Time! Get Yourself Suitable with This Guide on What to Expect

Met Gala celebrity chair Lewis Hamilton speaks at the Metropolitan Museum of Art's Costume Institute during a press conference October 9, 2024. (AFP)
Met Gala celebrity chair Lewis Hamilton speaks at the Metropolitan Museum of Art's Costume Institute during a press conference October 9, 2024. (AFP)

As springtime sunshine finally hits New York City, the Met Gala beckons — one of the most anticipated and visible parties in the world.

This year, the theme — “Tailored For You" — is focused on classic tailoring. As always, the dress code is inspired by the spring exhibit at the Costume Institute of the Metropolitan Museum of Art. “Superfine: Tailoring Black Style” is the first Met show to focus exclusively on Black designers, and the first in more than 20 years to have a menswear theme. The show looks at the evolution of Black style over the centuries through the lens of dandyism.

Here are some key things to know as fashion's biggest night approaches:

When is the Met Gala? The gala happens the first Monday in May — this year, May 5.

What exactly is the Met Gala? Not everyone knows that the gala is actually a fundraiser for the Costume Institute, the only self-funding department at the Met. Last year the evening brought in a whopping sum of more than $26 million to the museum's coffers.

Was it always this big? Definitely not. It started in 1948 as a Manhattan society midnight supper – held at various places like the Waldorf Astoria and the Rainbow Room. It took many years before it turned into a global event and one of the starriest nights of the year.

Who's hosting the 2025 Met Gala? Each year brings a new group of celebrity co-chairs. This year they are Pharrell Williams, Lewis Hamilton, Colman Domingo, and A$AP Rocky — along with Anna Wintour, the influential Vogue editor who always oversees the proceedings. NBA superstar LeBron James is honorary chair.

Who else is attending the Met Gala so far? Word on attendees trickles out slowly in the weeks leading up to the event. But this year there’s also a huge additional host committee with stars from various fields. (They don’t have specific host duties, other than showing up and, it goes without saying, looking fabulous.)

It includes athletes Simone Biles and husband Jonathan Owens, Angel Reese and Sha’Carri Richardson; filmmakers Spike Lee, Tonya Lewis Lee and Regina King; and actors Ayo Edebiri, Audra McDonald and Jeremy Pope, and musicians Doechii, Usher, Tyla, Janelle Monáe and André 3000.

Also in the group are author Chimamanda Ngozi Adichie; artists Jordan Casteel, Rashid Johnson and Kara Walker; playwrights Jeremy O. Harris and Branden Jacobs-Jenkins; and fashion figures Grace Wales Bonner, Edward Enninful, Dapper Dan and Olivier Rousteing.

Can anyone buy a ticket to the Met Gala? In a word: No. You cannot just buy a ticket. The right question is: If I were famous or powerful and got invited, how much would it cost?

If I were famous or powerful and got invited, how much would it cost? Individual tickets start at $75,000. Generally, though, companies buy tables. A fashion label, for example, would then host its desired celebrities. A table of 10 starts at $350,000 this year, as it did last year. There will be approximately 400 guests.

How strict is the dress code? The code is meant to be a guide, not a hard rule, and loose interpretation is encouraged.

How do guests spend the evening? Guests enter the museum and walk past an enormous flower arrangement in the museum’s grand lobby – always a talking point. Often there is an orchestra playing nearby. At the top of the grand staircase, Wintour and her co-hosts form a receiving line. Guests then head to view the exhibit, which is followed by dinner. The most hotly anticipated guests sometimes arrive around dessert time for maximum impact (we're looking at you, Rihanna).