Gucci sales slump continues as market awaits turnaround

PARIS, Feb 11 (Reuters) - Luxury group Kering (PRTP.PA), opens new tab 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.undefinedShares in Kering jumped in early trade on Tuesday, before paring gains, as the market briefly seized on hopes the company had reached an inflection point.undefinedThe French group said its sales fell 12% in October-December on a comparable basis from a year earlier, dragged down by a 24% drop at Gucci, which accounts for nearly half of group sales and two thirds of recurring operating profit but continues to struggle.undefinedSales at the group's smaller labels, particularly the upmarket Bottega Veneta, did better than expected, however.undefined"These results should reassure investors that trends are modestly improving against low sentiment and favourable positioning," analysts at RBC said in a note.undefinedKering CEO Francois-Henri Pinault said the group has reached a "point of stabilization, from which we will gradually resume growth".undefined"Gucci will come

back. I have absolutely no doubts about this," Pinault said.undefinedHe cautioned, however, that sales will pick up slowly in 2025. The group is focusing on cost control, and this year plans to close around 50 of its 1,800 stores, a third of which are outlets, executives said.undefinedKering executives, who gave no hint of who would succeed him, rejected the idea that De Sarno, who was fired after less than two years, was not the right hire. They said he helped the century-old label shift its focus back to more classic elegance.undefined"We are ready today to move on, and to deliver the creativity we now need, it's time for new artistic direction," said Pinault. Executives said a new designer would be announced promptly.undefinedGucci's fourth-quarter sales slump showed its aesthetic overhaul is still struggling to win new business. Analysts had not expected a rebound until next year but have said the recruitment of a new designer could slow progress.undefinedThe industry's sales rate is the slowest in years, weighed down by a property crisis in China.undefined