Kering shares drop 11% as Gucci sales slide

LONDON, Oct 23 (Reuters) - Shares in Gucci-owner Kering dropped 10% on Friday after the group reported further sales declines, but said it would stick with CEO Luca de Meo’s turnaround plan and accelerate store closures, aiming for 125 by year-end.

Gucci’s downturn persisted despite De Meo’s plan to make the brand’s pricing more enticing to middle-class consumers and creative director Demna’s new collections hitting stores, as luxury also contends with escalating conflict in the Middle East and China’s tax crackdown on the wealthy.

"The progress made on improving brand desirability remains in its very early stages," JP Morgan analyst Chiara Battistini said in a note.