Kering holds its annual general meeting amidst a transformation phase

Luxury group Kering is holding its annual general meeting on Thursday, a few weeks after unveiling its strategic plan, as the slowing luxury market seeks to reinvent itself.

Last September, the French giant's last annual general meeting saw the appointment of Luca de Meo as chief executive officer. François-Henri Pinault retained his position as chairman of the group. Kering owns Gucci, Saint Laurent, Bottega Veneta and Boucheron.

The former head of French car manufacturer Renault then stated his intention to reduce the group's debt. He also aimed to “rationalise, reorganise and reposition some of our brands.”

Kering's situation had become critical, with significant debt and cautious buyers. The group's sales fell by 13 percent in 2025 to 14.7 billion euros (17.07 billion dollars), while its net profit was divided by more than ten.

A little less than a year later, Luca de Meo has initiated a series of actions to turn the company around. At the end of 2025, Kering's debt stood at 8 billion euros, 2.5 billion euros less than at the end of 2024. To achieve this, Kering sold its beauty division to cosmetics giant L'Oréal in a deal worth four billion euros. The group has also postponed the acquisition of Valentino by two years.

The group also unveiled its medium-term strategic plan in Florence in mid-April, with a particular focus on its flagship brand, Gucci. The Italian house, which accounts for 40 percent of Kering's turnover, has fallen out of favour in recent years. Its sales dropped from 10.5 billion euros in 2022 to six billion euros in 2025.

During his presentation to investors, de Meo indicated that the solution would involve reducing the number of Gucci stores and focusing more on product quality. Since September, Gucci has also had a new CEO, Francesca Bellettini, who was previously Kering's deputy chief executive officer.

Another priority is China, which has long been a driver of the luxury market but has seen a slowdown in recent years. Kering intends to significantly increase its marketing and sales budgets in the region and close some points-of-sale.

Will this be enough to revitalise the company? While its share price has fallen by almost 20 percent since the beginning of the year, partly due to the war in the Middle East affecting luxury groups, it has gained approximately 38 percent over the past year.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Kering