Gucci-owner Kering alerts on profits as earnings tumble [Video]

Luxury group Kering said Wednesday that its half-year net profit fell by half and warned operating earnings for the second half of the year would be down around 30 percent.

Revenues slid 11 percent and its flagship brand Gucci continued to underperform, with the company hit like other luxury firms by weakness in the key Chinese market.

“In a challenging market environment, which adds pressure on our top line and profitability, we are working assiduously to create the conditions for a return to growth,” chief executive Francois-Henri Pinault said in a statement.

Net profit came in at 878 million euros ($953 million) on revenue of 9.0 billion euros.

Its measure of operating profit from ongoing operations fell 42 percent in the first half, and the company warned the figure could come in around 30 percent lower in the second half of the year “considering the uncertainties weighing on the evolution …