Gucci owner Kering has issued a profit warning as it experienced a slowdown in sales, sending shares in the sector lower on Wednesday.
Sales in the first quarter are expected to fall by 10% year-on-year, with revenues from Gucci, which accounts for two-thirds of operating income, set to drop by 20%.
A steeper sales drop at Gucci was most notabe in the Asia-Pacific region, said Kering.
Investors read across from the Paris-based group's warning to other luxury retailers, including Burberry Group PLC (LSE:BRBY), which sunk 5% and led the FTSE 100 top fallers on Wednesday.
Louis Vuitton Moet Hennessy (EPA:MC), the biggest player in the luxury industry, sunk by 3%, while Hermes and Watches of Switzerland fell by 2% and 3% respectively.
Kering's other luxury brand names include Saint Laurent, Balenciaga and Alexander McQueen.
At Gucci a turnaround is underway under its new creative director Sabato de Sarno, with his first collection having reached stores this month.
Kering says the collection is being met “with a highly favourable reception”, and expects volumes of the products to ramp up in the coming months.