“The Group’s 2025 performance does not reflect its true potential,” said Kering CEO Luca de Meo in a statement, adding that the company will present a restructuring plan in April.

Sales dropped by 13% while net profit plunged by 93.6%, it said.

Kering announced in June that it had poached de Meo, then the head of French automaker Renault, to become chief executive and help turn around the company alongside Francois-Henri Pinault, who will remain board chairman.

“On April 16, at our Capital Markets Day, we will present a clear roadmap to (…) revive growth, with precisely defined brand strategies, a more efficient organisation and rigorous financial discipline,” de Meo said.

Kering has struggled to turn things around at Gucci, the Italian fashion house famous for its handbags, and in March it wooed the Georgian designer Demna to take over as artistic director.

In 2025, sales of the Gucci brand alone are projected to fall by 22% to €6 billion, but Kering said the brand had seen improvement over the last quarters of the year.