Kering SA (EPA:KER) reported a 12% drop in fourth-quarter sales to €4.39 billion (£3.76 billion), with Gucci taking the biggest hit.
Sales at the Italian fashion house fell 24%, worse than analyst expectations of a 19% decline.
The company recently removed Gucci’s creative director, Sabato de Sarno, after his minimalist redesign failed to boost demand.
Gucci, which generates nearly half of Kering’s revenue, has been hit hard by slowing global luxury demand, particularly in China.
Despite this, finance chief Armelle Poulou noted a six-point sales improvement in mainland China between the third and fourth quarters.
CEO François-Henri Pinault said the company has reached a “point of stabilisation” and expects sales to gradually recover.