THE WHAT? Sales at luxe beauty company Kering have fallen 7 percent in Q4.

THE DETAILS In the fourth quarter of 2022, Gucci’s revenue was down 14 percent on a comparable basis relative to the same period in 2021. Indirectly operated stores, sales dropped 15 percent from a very high base.

THE WHY? Gucci was affected by the impact of COVID-19 lockdowns in China and is in the midst of a leadership change. At the same time, Balenciaga took a sales hit following a controversial advertising campaign featuring children.