Due to COVID-19, luxury brand Kering expects a 15 per cent decrease in its comparable sales in the first quarter of 2020, which ends on March 31. This decline would translate into a decrease of 13-14 per cent of its reported sales. The brand achieved an excellent first quarter in fiscal 2019, posting year-over-year increases of 21.9 per cent in reported sales and 17.5 per cent in comparable sales. Kering's revenues in Q1 2019 totaled €3.785 billion. Its quarterly revenues are expected to decline by around €550 million to €3.2 billion crisis.

The situation may impact its business during the entire first quarter, and also the second quarter of 2020. The company has implemented an initial action plan aimed at adapting its cost base and containing its working capital requirement. It is also considering additional measures that can be activated to mitigate the dilution of its recurring operating margin throughout the year, while protecting its houses’ market positions and preserving their growth potential and capacity to bounce back in the short and medium term.