Kering: a crucial week to reassure markets and relaunch Gucci

French luxury leader Kering, held back by difficulties at Gucci, is facing a decisive moment. This week, the group will present its new roadmap during a highly anticipated investor day in Florence.

All eyes are on the speech by Italian Luca de Meo, the group's chief executive officer, at the Capital Markets Day on Thursday in Gucci's birthplace. The stakes are high for the former Renault boss, who was appointed by François-Henri Pinault last June. He must demonstrate that Kering can restore the desirability of its houses, including Yves Saint Laurent, Bottega Veneta and Balenciaga, in a significantly slowing global market.

Urgent recovery for Gucci

While the luxury sector is going through a less prosperous period, Kering has particularly suffered from a decline in popularity for its flagship brand, Gucci, which accounted for approximately 40 percent of its turnover last year. The brand was heavily penalised by its underperformance in China, which has long been its main growth driver.

The figures speak for themselves. In 2025, Kering's sales fell by 13 percent to 14.7 billion euros (17.31 billion dollars), with net profit divided by more than ten. For Gucci alone, the decline was even more severe, with sales of six billion euros compared to 10.5 billion three years earlier.

De Meo method: deleveraging and financial agility

Upon his arrival, the captain of industry set a brisk pace to clean up the finances. Kering quickly sold its beauty division to the giant L’Oréal for four billion euros and postponed the acquisition of Valentino by two years.

The group, which will unveil its first-quarter sales this Tuesday after the market closes, has also increased its real estate disposals. In early April, it sold a majority stake in a prestigious Milan building for over one billion euros. As a result, at the end of 2025, debt stood at eight billion euros, 2.5 billion less than a year earlier.

Managerial “gamble” that is paying off

For Luca Solca, an analyst at Bernstein, the choice of Luca de Meo is paying off: “A gamble had to be taken because things were going badly. Someone was needed who could potentially make a difference very quickly, and Luca de Meo proved to be the right choice in this respect,” he told AFP.

Anne-Laure Bismuth from HSBC bank agrees: “Luca de Meo's arrival was a bit surprising because he doesn't come from the luxury industry, but he brings a new vision (...) with different processes.” HSBC also anticipates a return to growth as early as 2026, with a projected 5 percent increase for the group.

Diversification and end of “over-dependence”

Internally, the transformation is accelerating. Francesca Bellettini has been appointed CEO of Gucci, and two new divisions — industry and clients — have been created to optimise operational efficiency.

Kering is also seeking new growth drivers in jewellery (Boucheron, Pomellato) to reduce its “over-dependence” on Gucci, a term used by Luca de Meo himself in an internal memo at the end of 2025. Now relieved of debt stress, the executive can focus on the core issue: reigniting the creative flame of its brands.

This article was translated to English using an AI tool.

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