Kering moves to reduce reliance on Gucci

Kering is preparing for a major reset as new chief executive Luca de Meo signals the end of the group’s heavy reliance on Gucci, according to reporting by the Financial Times. The luxury conglomerate has begun an 18-month restructuring programme under a broader recovery plan, “ReconKering”, aimed at resizing operations and returning all houses to growth within three years.

The shift follows a challenging period for the group, with like-for-like sales down 12 percent to 11 billion euros in the first nine months of 2025. Despite a modest lift in Kering’s share price since de Meo’s appointment, the CEO has warned staff that profitability has been squeezed by rising costs and slowing revenues.

Gucci remains central to the turnaround but no longer the sole engine. The brand still delivers around half of group revenue, yet faces creative churn and weaker demand in China. De Meo is pushing for broader momentum across Saint Laurent, Bottega Veneta and Balenciaga, while loss-making Alexander McQueen is expected to face some of the earliest restructuring measures.

Strategic reviews with Bain and BCG are underway across all maisons, the FT said. Early actions include debt reduction, tighter cost controls and a closer look at pricing, product mix and marketing spend. Kering’s retail footprint is also set for rationalisation, with underperforming stores earmarked for closure and leases up for renegotiation, while selective wholesale expansion remains on the table.

The internal reset will form the basis of a new strategic plan scheduled for release in spring 2026.