Kering SA reported a sharp deterioration in first-half results as weakness at its flagship Gucci label continued to weigh on the French luxury group. Net profit fell 46%, slipping below €500 million, while revenue declined 16% to €7.6 billion. Recurring operating profit dropped 39% to €969 million. Gucci’s sales slid 25% in the second quarter, extending a multi-year slump despite easier comparisons and a second design overhaul in three years. Chief Financial Officer Armelle Poulou told analysts she expects gross margins in the second half to track the first half and said Kering could implement “moderate” additional price increases in the autumn after selective hikes earlier in the year. The company is preparing for a leadership transition, with former Renault chief executive Luca de Meo set to take over as CEO in mid-September while François-Henri Pinault remains chairman. Demna Gvasalia, previously at Balenciaga, has been named Gucci’s new artistic director but has yet to unveil his first collection. Separately, Pinault family holding Artemis, which controls 43% of Kering, said a rise in standalone debt to €7.1 billion is temporary and that it faces no liquidity constraints despite lower dividend income from Kering and other assets.