Kering has reported a smaller-than-expected drop in Q4 sales as new CEO Luca de Meo battles to stabilize the Gucci owner. Sales reached 3.9 billion euros ($4.06 billion), down 3% from the previous year but beating analysts’ forecast for a 5% drop. Revenue dropped 10% at flagship label Gucci, the 10th quarterly decline but better than expectations of a 12% fall. “With sales trends improving quarter after quarter, the momentum is real — early, fragile, but real,” De Meo said. The group reduced its store network by 75 boutiques last year. Kering’s annual operating income reached 1.63 billion euros ($1.70 billion), with net debt at 8 billion euros ($8.32 billion).

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