French luxury group Kering reported Tuesday a 46 percent plunge in net profit during the first half, with sales slumping again at its flagship Gucci brand, as the group awaits a new CEO to try to regain its footing.

Group net profit fell to 474 million euros ($547 million) in the first half from 878 million in the same period last year, on sales that were down 16 percent at 7.6 billion euros.

Kering announced in June that it had poached Luca de Meo, then the head of French automaker Renault, to become chief executive and help turn around the company alongside Francois-Henri Pinault, who will remain board chairman.

Pinault’s family controls the holding company that is the largest shareholder in Kering, whose crosstown rival LVMH reported last week a 22 percent drop in first-half profit.

Luxury groups worldwide have been hit hard by slowing Chinese appetite for luxury goods and by US President Donald Trump‘s barrage of tariffs since returning to office this year, which could crimp demand in a North American market that represents a fourth of Kering’s sales.

“Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development,” Pinault said in a statement.

Gucci remains the prize in Kering’s stable of brands, generating 44 percent of its sales and roughly two-thirds of its operating profit.

But it has struggled to turn things around at the Italian fashion house famous for its handbags, and in March it wooed the Georgian designer Demna to take over as artistic director.

Gucci’s sales dropped 26 percent in the first half to 3.03 billion euros, for an operating profit of 486 million euros — down 52 percent.

But investors may have to wait for a recovery plan from De Meo, who has yet to take up his post.

“The change in group management is positive, but earnings will remain under pressure in the short term,” analysts at HSBC said in a note before the earnings release.

“Luca de Meo will not take up his post until September 15, and it’s unlikely that he will present his strategic plan before the publication of full-year results, expected in February 2026,” they said.

Kering’s two other top brands are also facing headwinds, with Yves Saint Laurent sales falling 11 percent in the first half to 1.29 billion euros, and Bottega Veneta sales up just one percent at 846 million euros.

Kering must also contend with a debt load that stood at 9.5 billion euros at the end of June, the result of acquisitions and investments in recent years.

It bought a 30 percent stake in Valentino, took over the beauty brand Creed, and opened stores on key but pricey sites in cities including Paris and Milan.

“Selling this real estate (below the purchase cost) is a bitter but necessary solution,” analysts at Bernstein wrote ahead of the earnings statement.

Kering said it was “stepping up the initiatives needed to support the development and growth of its houses, while implementing with determination the efforts required to increase its efficiency”.

“These actions imply particular vigilance with regards to financial discipline,” it added.