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.

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

Luxury group Kering said its return to growth will take time after its embattled star label Gucci posted another quarter of weak sales and has yet to name a new chief designer to galvanise the Italian brand.

Fiscal 2024 revenue fell 12% and wholesale dropped by more than 20% as the company looks to fix its distribution strategy and potentially downsize its retail network.

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

Luxury group Kering’s fourth quarter sales were hit by a continued slump at its main brand Gucci, it said on Tuesday, but a slight improvement in the group’s performance in major markets China and the United States buoyed investors.

Kering SA shares rose as investors took encouragement from better-than-expected profit and signs of stabilization at Gucci, its biggest brand, which has suffered in recent years from weaker demand.Most Read from BloombergNice Airport,

Sales at French luxury group Kering have been weighed down by weak performance at its biggest brand Gucci, as investors wait for a new designer to be named to lead a stalled turnaround.

Kering chairman and CEO François-Henri Pinault shared his strategy for 2025 at the group’s earnings meeting and following press conference.

Mélanie Flouquet, now chief strategy officer, is expected to take up the new position on March 1, with Boston Consulting Group executive Joël Hazan set to succeed her.

On Tuesday, Kering said its sales fell 12 per cent to €4.97 billion in the fourth quarter ending 31 December — slightly better than consensus estimates of a 13 per cent decline.

Kering’s revenue fell by less than analysts expected in the fourth quarter as the Gucci owner seeks to reinvigorate a turnaround plan for its core brand. Some luxury groups have pointed to signs ...