He said that it "makes no sense" to shift production out of Europe, as the group's culture and heritage is part of its "promise" to customers.

Most of our brands, we're producing in Italy and in France… we're selling a part of our culture," Kering CEO Francois-Henri Pinault said.

Revenue at Gucci, Kering SA's biggest label, fell 24% on a comparable basis in the final quarter of last year, but cost-control measures helped Kering generate annual profit that slightly beat analysts' estimates.

The French luxury group reported lower revenue at a time when some peers have signaled a potential rebound in demand.

The fall in revenue comes as some peers have signaled a potential rebound in demand for luxury goods.

French luxury group Kering reported a 12% drop in fourth quarter sales on Tuesday, dragged lower by its Italian brand Gucci, but flagged a slight improvement in major markets China and the United States.

Gucci owner Kering reported a sharp drop in 2024 earnings on Tuesday, days after parting with its flagship brand's creative director in a bid to revive the struggling fashion house.

French luxury goods firm Kering on Tuesday reported better-than-expected fourth-quarter sales that were nevertheless down year-on-year amid lagging demand for its main Gucci label.

Francois-Henri Pinault, Kering SA’s chief executive officer, said he doesn’t expect an improvement in Chinese demand this year, dimming hopes for a rebound at Gucci, the company’s biggest brand.

Kering SA's revenue decline reverses as new products drive recovery. Performance in non-Gucci brands strengthens outlook. Click for my PPRUF earnings update.

Gucci’s sales plummeted by 24% in the last quarter of 2024. Kering, the multinational holding company that owns Gucci, Saint Laurent, and Bottega Veneta, amongst others, reported on February 11, 2025,

Kering earned $4.52 billion in the fourth quarter 2024, better than predicted but still a 12 percent drop year-over-year.