Overview
- At a Capital Markets Day in Florence on Thursday, Kering unveiled ReconKering, a reset‑to‑2030 plan that aims to more than double the group’s 2025 recurring operating margin in the mid term.
- Kering set near‑term operational moves for Gucci that include refurbishing or relocating two thirds of stores, cutting selling space by 20%, reducing outlets by a third, and trimming inventory by €1 billion over 12 months.
- The group is shifting its mix toward higher‑margin lines with a bigger push in jewelry and eyewear, a finalized beauty partnership with L’Oréal, a Google project to make luxury smart glasses, and a minority stake in China’s Icicle.
- CEO Luca de Meo said Gucci must rebuild in China after years of over‑reliance on easy growth and discount outlets, promising better locations, a sharper in‑store experience, and product focus to restore desirability.
- Kering’s weak first quarter set the backdrop, with group revenue at €3.56 billion down 6% reported and Gucci at about €1.34 billion down 14% reported, and analysts reacted coolly on Thursday, asking for clearer near‑term sales milestones.