Gucci 2024 sales in the red, says luxury fashion house owner Kering

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.

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

Sales retreated 12 percent to 17.2 billion euros.

"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 stabilization, 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.