Title: Kering Anticipates Sharp Profit Decline Amidst Sluggish Gucci Sales

The French luxury group Kering, known for its brands such as Gucci, Saint Laurent, Balenciaga, and Bottega Veneta, reported a significant drop in sales in the third quarter. The primary reason cited for the 16% decline in sales was a decrease in demand from China. In an announcement made today, Kering disclosed that it expects its annual operating income to be nearly half of previous forecasts due to continued challenges faced by its flagship brand, Gucci.

The company's quarterly revenue stood at 3.79 billion euros ($4.08 billion), falling short of analysts' forecasts, which had anticipated an 11% drop according to a Barclays report. This decline in sales signals a larger-than-expected setback for the luxury conglomerate, whose growth expectations were dampened by reduced demand for luxury goods in the Chinese market.

The anticipated drop in operating income highlights the significant challenges Kering faces amid a difficult global economic environment. Weak demand in China has a substantial impact on the company's performance. This development represents a setback for Kering, as it struggles with the effects of global economic pressures on the luxury sector.