PARIS — Kering’s new chief executive officer Luca de Meo pledged to double down on his turnaround plan after the ailing French luxury group reported a 10 percent drop in revenues in the third quarter.

Still, a better-than-expected performance at the company’s star brand Gucci provided a glimmer of hope.

Organic sales at the maker of Jackie handbags and Horsebit loafers fell 14 percent in the three months to Sept. 30, beating a company-compiled consensus forecast for a 16 percent decline. This compared with a 25 percent drop for Gucci in the second quarter. 

Group revenues totaled 3.42 billion euros, representing a 5 percent decline in comparable terms. This came on the heels of a 15 percent drop in organic sales in the prior quarter, and was markedly better than the 3.31 billion euros the market was expecting. 

Organic sales fell 4 percent at Saint Laurent, and rose 1 percent in the “other houses” division, which includes Balenciaga, Alexander McQueen, Boucheron and Qeelin. Bottega Veneta posted a 3 percent rise, and the Kering eyewear and corporate division saw a 6 percent increase. 

Nonetheless, de Meo struck a vigilant note. 

“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” he said in a statement. 

“This reinforces my determination to work on all dimensions of the business to return our houses and the group to the prominence they deserve. We are working relentlessly on our turnaround, as shown by our recent decisions,” he added.

Since he officially took up his duties on Sept. 15, Kering has made several big moves geared at reviving Gucci and tackling the group’s net debt, which stood at 9.5 billion euros at the end of June. 

Kering postponed a deal with Mayhoola to acquire the remainder of Valentino, and named Francesca Bellettini, one of its most visible and accomplished executives, as president and CEO of Gucci. 

Over the weekend, the group said it would sell its beauty division to L’Oréal for 4 billion euros in cash, in addition to granting the French beauty giant long-term fragrance and beauty licenses for some of its top brands. The partnership, hailed as a category game–changer, also includes a joint venture in the field of wellness.

The moves all reflect de Meo’s determination to deliver on his pledge to Kering shareholders in early September. Speaking for this first time since his appointment was announced, the former Renault CEO said he would present a detailed strategy in the spring, but would start implementing his turnaround plan before the end of this year.

“We will initially focus our efforts on the most effective levers to improve the quality of our capital allocation and generate a tangible operational rebound,” de Meo said at the time. “We will have to continue to reduce our debt, cut our costs and, where necessary, rationalize, reorganize and reposition some of our brands.”

Providing some insight into his method, de Meo said it was crucial to act quickly to restore investor confidence. “We obviously have to try to get some mojo back with the market,” he said. 

Ahead of the results, RBC Capital Markets raised its share price target for Kering to 240 euros from 220 euros, while maintaining its “perform” rating. 

“Kering is under fairly significant pressure to stabilize revenue trends at Gucci principally, and Saint Laurent and Other Houses to a lesser extent. We believe it is in the early innings of its turnaround, with management and creative director changes largely in place,” it said in a research note. “For now it appears that its shares are discounting a full financial revival leaving little incremental upside in the near term in our view.”