Shares in Kering rose on Wednesday with analysts suggesting investors are looking past another weak quarter of earnings at the luxury goods conglomerate towards hopes for a turnaround.

The French luxury group on Tuesday booked revenue of $4.29 billion for the second quarter, 18% lower than in the prior-year period in reported terms.

Gucci accounts for about half of Kering’s sales and two-thirds of operating profits. A turnaround at the brand has stalled and performance across the rest of the group has also deteriorated amid a global slowdown in luxury demand. Sales at Yves Saint Laurent, the second-largest brand, were also down by 10 per cent in the quarter.