Luxury brand house Kering’s operating profits fell 5% in 2014, as demand for Gucci products faltered and despite initial signs of a turnaround at struggling sportswear label Puma.
Revenue rose 4% to €10bn (£7.4bn). Kering reported an operating profit of €1.7bn (£1.3bn) in 2014, up 3% on 2013 at comparable exchange rates and down 5% on a reported basis.
EBITDA declined 2.6% to €2m (£1.5m), with the margin down by 1.4 percentage points to 19.8%.
Kering said strong growth at smaller labels Saint Laurent and Bottega Veneta partly offset the poor performance of its two flagship brands, which it believes will post better results in 2015.
Chairman and chief executive François-Henri Pinault said the recent changes in Gucci’s leadership would revive the brand, while sales improved at Puma late last year.
Gucci appointed its former head accessories designer Alessandro Michele as creative director in January.