Shares in Kering slumped as much as 6 percent in early trading Thursday on the Paris bourse as investors digested its 14 percent decline in first-quarter revenues, and a 25 percent drop at its star brand Gucci.

The numbers came in about 3 percent below consensus expectations, and represent a deceleration from the fourth quarter of 2024, when Kering sales fell 12 percent.

In a research note Thursday, Deutsche Bank lowered its full-year earnings per share forecast by 13 percent “given the Q1 miss and more cautious outlook for 1H from management.”

During a conference call on Wednesday to discuss the results, Kering executives were on the hot seat and assured prompt action to improve Gucci’s fortunes, including revving up its supply chain to speed new and improved leather goods to the market.

Last month, Kering said Balenciaga’s star designer Demna would become the new artistic director of Gucci, tasked with jolting the Italian fashion house out of its doldrums with a gust of strong creativity. He is expected to deliver the first “hint” of his vision this September, as reported.

Kering is to host its annual general meeting at 3 p.m. Paris time on Thursday.

Europe’s other main luxury players saw smaller dips in their share prices: down 1.4 percent at Compagnie Financière Richemont, 0.8 percent at Hermès International, and 0.3 percent at LVMH Moët Hennessy Louis Vuitton.

According to Bernstein analyst Luca Solca, a recovery in Chinese demand will be key to any recovery for Kering in the second half.

“Management admits it has little visibility on this factor. This 2H25 trajectory will depend partly on an improvement in the macroeconomic setting (in addition to specific initiatives by Gucci), which also remains uncertain,” he wrote.

On Wednesday, Kering reported double-digit declines across all regions in the first quarter of the year, with Asia-Pacific down 25 percent, in line with the last three months of 2024, the company noted.