Gucci, the flagship fashion brand of French luxury group Kering, reported a sharper-than-expected decline in third-quarter sales as weakness in China continued to pressure demand and cast doubt on the progress of its turnaround strategy.

Revenue at Gucci fell 6 percent on a comparable basis in the third quarter, according to Kering, compared with the 3.3 percent decline expected by analysts. The weaker performance triggered a sharp fall in Kering shares as investors reacted to renewed concerns over the luxury brands recovery.

China remained a key source of weakness for Gucci, reflecting continued pressure on consumer demand in one of the worlds most important luxury markets. The slowdown has become a major challenge for luxury companies as brands face weaker discretionary spending and changing consumer behaviour.

The latest results are particularly significant for Gucci because Kering has been pursuing a multi-year turnaround aimed at restoring the brands growth and strengthening its position in the global luxury market. The weaker-than-expected sales performance suggests that the recovery remains challenging and could take longer than previously anticipated.

Gucci is Kering's largest brand and a major contributor to the groups overall performance. Consequently, continued weakness at the fashion label can have a significant impact on Kering's financial results and investor sentiment toward the wider luxury goods sector.

The performance also highlights the importance of the Chinese market for global luxury brands. A prolonged slowdown in China could continue to weigh on sales growth and make it more difficult for luxury companies to achieve their recovery targets.

Kering shares fell sharply following the results, reflecting investor concerns that the weakness at Gucci could persist and delay the groups broader turnaround.