Shares in the Milan-based group tumbled more than 7% to 47.70 euros in morning trading following the disclosure. The slowdown marks a sharp deceleration from the 12% growth recorded in the first three months of the year. Management attributed the decline primarily to reduced tourist activity, specifically noting that conflict in the Middle East has disrupted critical transit corridors between Asia and Europe.

Analysts at Bernstein suggest these headwinds will likely persist through the summer months, forcing the company to wait until autumn for a potential recovery in luxury spending. However, some observers urge caution against overreacting to mid-year performance. Citi analysts Thomas Chauvet and Alberto Cecchetto maintain that the second quarter represents only a small fraction of annual revenue. They argue that the brand’s long-term outlook remains strong, provided the company leverages its traditional winter strength in the fourth quarter. As the analysts noted, it is premature to judge the year’s full performance based on June data.