Kering shares plunged 14% after the company warned that Gucci sales are expected to fall 20% in the first quarter amid declining Asia transactions. The rare profit warning forecasts that Kering's overall first-quarter revenues will drop 10% due to a steeper sales drop at Gucci. Kering's warning dragged down shares of other European luxury giants LVMH, Dior, Hermes, and Burberry, by 2 to 5%. Gucci has struggled to retain market share as consumers tighten their belts due to inflation and shift to "quiet luxury" brands.