French fashion company Kering has given a cautious assessment of rebounding luxury sales in China following a "deep impact" for its flagship brand Gucci in the first quarter.
Sales in mainland China turned positive in April for Kering, said its chief financial officer Jean-Marc Duplaix. He cited the repatriation of tourist spending as well as pent-up demand following the coronavirus lockdown as factors.
He warned that the trend of catching up on purchases thwarted by quarantine measures will likely be short-term.
First-quarter sales fell 16.4pc on an organic basis globally while Gucci's sales fell 23pc.
With the Chinese economy shrinking in the last quarter for the first time since at least 1992, the rebound is not expected to be durable as many consumers will rein in spending.