Luca de Meo’s Strategy for Kering: Trimming Down and Reducing Gucci Dependence to Spark Growth

Kering’s new plan is already on the table. The luxury conglomerate aims, in the medium term, to reduce its store network, raise prices and reduce its dependence on Gucci. These are three of the strategic lines for a return to growth advocated by the new CEO of the holding company, Luca de Meo, in a report sent to senior management, to which Reuters has had access.

The document, entitled ReconKering, introduces the first detailed description of De Meo’s strategy for the group, although the full plan will be presented to investors in the spring, as the Italian executive said during his official presentation last September. With De Meo at the helm, the company’s shares are up 75%.

In recent quarters, Kering has seen its flagship Gucci reduce its sales by double digits while accumulating debt. At this point, De Meo points to the need to reduce the group’s “excessive dependence” on the Italian fashion house, betting more heavily on its Saint Laurent, Bottega Veneta and Balenciaga brands. Among the names mentioned by De Meo in the letter is also the tailoring specialist Brioni, which could be a candidate for divestment along with the British firm Alexander McQueen. In fact, the eponymous brand of the late London designer has been the first to be hit by De Meo’s scissors, announcing the first cutback plan at its headquarters.

The group has already closed as many as 55 stores in the last year, but still intends to further reduce its fleet. De Meo is also considering a “strategic price review”. The CEO thus sets a deadline of 18 months for all the group’s brands to return to growth, but acknowledges that it will take three years to re-establish “optimal financial performance”.

Luca De Meo’s plan for Kering includes reducing dependence on Gucci, its star brand for years

In the third quarter of 2025, the group’s sales continued to decline, falling by 10% to €3.415 billion. Nevertheless, the market received the results with optimism and, the day after the presentation, the conglomerate’s shares rose 9% on the Paris Stock Exchange.

Among the first strategic plans of the former CEO of Renault was also the divestment of the company’s make-up and cosmetics division, Kering Beauté. Its sale to the L’Oréal group, which includes the licensing of firms such as Gucci (currently in the hands of Coty), was one of the deals of the year, raising the transaction to €4 billion.