Gucci Owner Kering Plans to Complete Structural Reset This Year in Bid to Revive Fortunes

By Andrea Figueras

French luxury giant Kering said it expects to complete a structural reset by the end of this year as it aims to turn around its fortunes after a lull in growth, particularly at flagship brand Gucci.

The group on Thursday held its capital markets day, outlining its new ReconKering strategy to boost growth under the leadership of longtime autos executive Luca de Meo, who took over as Kering's boss in September with the aim of breathing new life into the beleaguered company.

Kering said its plan would restore financial discipline and operational efficiency across the group while focusing on refreshing creative direction and product lineups of its brands to boost their appeal.

In the medium term, the group targets gradual market outperformance in revenue and expects to more than double the recurring 11.1% operating margin it booked in 2025.

By the end of 2028, Kering said it intends to be in a phase of renewed, sustainable growth.

The Paris-based company has struggled with weaker demand for pricey items in recent years, with Gucci being one of the hardest-hit brands in the entire luxury sector.

The Italian label is pursuing a revamp strategy under a new executive and creative leadership, in an effort to rekindle consumer appetite for its designs.

Other brands under Kering's umbrella, including Saint Laurent and Balenciaga, have also lost momentum in past years.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

April 16, 2026 01:52 ET (05:52 GMT)