The French luxury group, whose other brands include Saint Laurent, Bottega Veneta and Balenciaga, said its net profit fell 62% to €1.13 billion (US$1.16 billion) last year compared with 2023.

Sales retreated 12% to €17.2 billion.

“Across the group, and at Gucci first and foremost, we made critical decisions to raise the impact of our communications, sharpen our product strategies, and heighten the quality of our distribution,” Kering chief executive Francois-Henri Pinault said in a statement.

“Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilisation, from which we will gradually resume our growth trajectory,” he said.

Gucci parted ways with its creative director, Italian designer Sabato De Sarno, last week after a collaboration that lasted two years and failed to turn things around at the fashion label known for its handbags with the double G logo.