December 7, 2016 / 7:09 AM / 9 days ago

BRIEF-Kering Expects Q1 Consolidated Revenue In Decline

March 20 (Reuters) - KERING SA:

* KERING: INITIAL ESTIMATE OF COVID-19 EPIDEMIC IMPACT

* ON CORONAVIRUS: KERING ESTIMATES THAT ITS CONSOLIDATED REVENUE FOR THE FIRST QUARTER OF 2020, ENDING MARCH 31, SHOULD POST A DECLINE OF 13% TO 14% IN REPORTED TERMS (DOWN AROUND 15% IN COMPARABLE TERMS) VERSUS THE FIRST QUARTER OF 2019

* ON CORONAVIRUS: IS OBSERVING ENCOURAGING SIGNS IN MAINLAND CHINA, WHERE DECLINE IN STORE TRAFFIC, AND HENCE IN SALES, IS NARROWING

* EXPECTS A FIRST HALF 2020 RECURRING OPERATING MARGIN IN DECLINE, WHICH WOULD BE PREMATURE TO QUANTIFY AT THIS STAGE GIVEN THE DYNAMIC NATURE OF THE SITUATION AND THE CURRENT LACK OF VISIBILITY

* EXPECTS Q2 2020 REVENUE SHARPLY IMPACTED BY EFFECT OF EPIDEMIC ON LOCAL CLIENTELES AND TOURISM

* THE GROUP IS CURRENTLY 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

* THE EPIDEMIC DOES NOT CALL INTO QUESTION THE STRUCTURAL DRIVERS OF THE LUXURY INDUSTRY

* THE STRENGTH OF KERING’S BUSINESS MODEL REINFORCE THE GROUP’S CONFIDENCE IN ITS MEDIUM- AND LONG-TERM GROWTH PROSPECTS Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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