The owner of Gucci, half-closed stores in China due to coronavirus

the French holding company Kering, which owns Gucci brand, shut half its stores in China and postponed the opening of new stores and promotional campaigns in the country due to the outbreak of coronavirus, writes Reuters.

the Head of Kering, Francois-Henri Pinault reported a sharp drop in sales in mainland China and noted that opening hours of shops that remain open, including in Hong Kong, has been reduced.

According to Pinault, Kering lays the reconstruction of existing and the opening of new stores, as well as reviewing the launch of new products in China.

According to the state Committee of health of China, the number of confirmed cases of infection with coronavirus in mainland China increased to 44.6 thousand, the death toll has reached 1113.

the Outbreak and taken for its containment measures have hit the retail and tourism sector and is expected to slow economic growth in the current quarter.

However, the luxury conglomerate that also owns brands Saint Laurent and Balenciaga, remains optimistic about its long-term prospects.

the group’s Revenue in the fourth quarter increased by 13.8% compared to the same period in 2018 and amounted to 4.36 billion euros, helped by demand in China before the outbreak of the coronavirus. Growth in comparable terms was 11.4% instead of the expected increase by about 10%.

Gucci Sales also exceeded expectations in the fourth quarter. The revenue of the brand increased by 10.5% in organic terms, while analysts on average had expected growth of 9.5%.

by the end of 2019 Kering net profit fell by 37.4% to 2.31 billion euros.