In an unscheduled trading update, Kering forecasted a likely 10% decline in first-quarter revenues on a comparable basis, primarily attributed to sluggish sales at its flagship brand, Gucci, which constitutes over half of Kering’s revenues. Gucci’s comparable revenues are anticipated to drop by 20 percent YoY, especially affected by underperformance in the Asia-Pacific region. Despite efforts to revamp its image under a new leadership team, including creative director Sabato De Sarno and CEO Jean-François Palus, Gucci’s sales continued to slide, compounded by delays in introducing new collections. The wider luxury market’s downturn, particularly in China, where demand has been slower to recover than expected, has also contributed to Kering’s challenges.