Dragged down by weakness at its flagship Gucci brand, the French luxury group reported a 14 percent decline in the first three months of 2025.

The stock fell after the owner of Gucci and Yves Saint Laurent posted sales below analysts’ expectations, unnerving investors as the group navigates a slowdown in luxury-goods spending.

Shares of Kering fell on Thursday after the French luxury goods group posted lower than expected first-quarter sales and pointed to further macroeconomic headwinds ahead.