PARIS, France — French luxury and sports group Kering is to announce this week the appointment of former Hugo Boss chief executive Claus-Dietrich Lahrs as the new head of its Italian leather goods maker Bottega Veneta, a source close to the matter said.

Lahrs, who left Hugo Boss in February after eight years at the German fashion brand, joins Bottega Veneta at a difficult time. The Italian brand has its seen sales drop continuously in the past year, partly due to weaker demand from Chinese buyers, its No.1 customer base.

"This is good news for the brand," the source said, speaking on condition of anonymity.

In the quarter to June, Bottega Veneta's sales in its own shops were down 11 percent. The brand is Kering's second biggest in terms of revenue behind Gucci. In 2015, it generated nearly 1.3 billion euros ($1.46 billion) in sales.

The announcement is expected to be made on Friday but the timing could be brought forward, a separate source said.

Kering declined to comment.

By Astrid Wendlandt; editor: Alexandra Hudson.