Gucci sales fell as Kering SA’s biggest brand grapples with the twin challenges of a luxury goods slowdown and internal tumult.

Gucci’s third-quarter comparable revenue decreased 7 per cent, Kering reported on Tuesday. Analysts anticipated a 6.2 per cent decline. The Paris-based company’s overall sales decreased 9 per cent, falling short of expectations.

As the luxury company run by the wealthy Pinault family navigates management and creative changes at Gucci, Kering’s performance has lagged behind competitors. The brand, which accounts for around two-thirds of Kering’s operating profit, has hired new CEOs and creative directors.

The slowness is not limited to Gucci. Comparable sales at Kering’s other brands decreased 15 per cent at other houses and fell 12 per cent at Yves Saint Laurent, both of which fell short of expectations. Balenciaga is the unit’s top brand. According to Kering, the brands are minimising their exposure to wholesale distribution and had a strong foundation of comparison from a year ago.

“We’re still seeing a polarisation in the performance of Balenciaga, depending on the markets,” Kering Deputy Chief Executive Officer Jean-Marc Duplaix said.

Earlier this month, LVMH Moet Hennessy Louis Vuitton SE, whose brands include Christian Dior and Louis Vuitton, disappointed investors with less robust growth than expected.