Group revenue in the first three months of the year amounted to 3.88 billion euros ($4.40 billion), an organic year-on-year decline of 14%, the Paris-based group said. A Visible Alpha consensus of analysts cited by HSBC had forecast a 9.7% drop.

Deputy CEO Francesca Bellettini talked about the creative transition at Gucci and Balenciaga during the group’s earnings call.

After years of strong results fueled by a rise in demand for luxury goods after the pandemic, customers dialed back on spending amid inflation and high interest rates.