Luxury group Kering, owner of Gucci, reported a 15% drop in quarterly revenues, missing market expectations. Sales totaled 3.7 billion euros, with Gucci sales down 25% year on year. The group aims to reduce debt by closing 80 stores by 2025 and has hired a new CEO to lead restructuring efforts.

Kering’s net debt is 9.5 billion euros, down from 10.5 billion last year. The group plans to close 80 stores by 2025 and has hired a new CEO. The luxury sector is struggling due to weak demand in China and inflation affecting spending.

Newly-agreed 15% tariffs on EU exports to the US will impact Kering, which makes over 20% of its sales there. The company has already raised prices globally and in the US, with potential for more adjustments in the autumn. The group believes the tariff impact is manageable.

Kering’s finance chief stated that the company is prepared to handle the tariff impact. The group’s brands, including Saint Laurent and Balenciaga, have raised prices globally. Kering is closely monitoring consumer sentiment and may make further price adjustments in the future.

Read more at Yahoo Finance: Kering’s quarterly sales weaker than expected, Gucci down 25%