Kering, the French luxury group, which owns brands like Alexander McQueen, Balenciaga and Gucci, expects operating profit to drop by 40% to 45% as Gucci’s sales declined in its first quarter. Its revenue is €4.5 billion, down 11% as reported or down 10% on a comparable basis, which Kering attributed to lower store traffic. While Gucci’s revenue amounted to €2.1 billion, which marked a decline of 21% as reported, and 18% on a comparable basis. Its revenue from the directly operated retail network fell 19% on a comparable basis in the first quarter, with a sharp decline in Asia-Pacific. Kering will now take action to “optimise its cost structure.”