Leave no stone unturned: That appeared to be Luca de Meo’s mantra as he detailed his 360-degree strategic plan to return Kering to its former position as the “undisputed challenger” in the luxury industry after years of lagging behind its sector peers.

In a marathon address that stretched past the three-hour mark, the chief executive officer kept an upbeat tone and telegraphed big ambitions on every topic, peppering his talk with terms like leveraging, unlocking, accelerating, reigniting and scaling.

But his favorite word by far was “double,” disclosing a litany of targets with 2030 as a deadline.

These included doubling: its overall jewelry business; its business with top-tier clients, which already account for 25 percent of luxury purchases; sales density in Gucci’s boutiques and its icon products; Saint Laurent’s menswear and Asia businesses; Bottega Veneta’s non-leather goods categories; and Balenciaga’s leather goods, women’s rtw and U.S. businesses.

The former Renault chief, who took over the ailing French luxury group in September, unveiled his strategic roadmap under the banner “ReconKering” during a Capital Markets Day in Florence, Italy, aimed at promoting clearer priorities, better accountability and faster decision-making.

It was articulated around three phases: completing a structural reset by the end of 2026, entering a rebuild phase of sustainable growth by the end of 2028, and reclaiming the group’s “leadership as the reference player in Next Luxury” by the end of 2030.

He kicked off the presentation by inviting all of his top managers and creatives to join him on stage, including Demna, who has been given the mammoth task of kickstarting Gucci, Kering’s star brand.

Saint Laurent’s Anthony Vaccarello, Balenciaga’s Pierpaolo Piccioli and Bottega Veneta’s Louise Trotter also mingled with brand CEOs, and embraced Kering chairman François-Henri Pinault.

 

“The transformation we’re driving is not the project of one individual, it’s the project of our entire group,” de Meo told the assembled journalists, equity analysts and investors.

Doubling Profitability

While he left his audience hungry for overall revenue targets, de Meo set out an ambition to more than double profitability within the next five years. Between 2022 and 2025, Kering’s recurring operating margin tumbled from 27 percent to 11 percent as its main growth engines – Gucci and China – stalled.

“We have been building profitability methodically, structurally and sustainably,” de Meo said.

He plans to boost full-price sales by restoring the desirability of Kering’s brands, reducing its reliance on wholesale and outlets, and shuttering 250 stores over the next four years with the aim of doubling sales density – including 100 closures this year alone. In parallel, the group plans to renovate two-thirds of its retail network by 2030.

De Meo is targeting a 1-billion-euro reduction in inventory levels within his first 12 months on the job, and is conducting a broad revamp of the group’s supply chain, importing expertise from the auto sector to cut costs, deliver productivity gains and increase synergies.

To that end, Kering has created two new centers of excellence for Industry and Client; appointed a chief digital, AI and IT officer, and created a dedicated unit for high jewelry.

The executive also identified several new avenues of growth, launching a new investment platform, dubbed House of Wonders, by announcing the acquisition of a minority stake in Chinese fashion group ICCF, the parent of brands including Icicle and Carven.

He said it was a way for Kering to explore new categories and geography with minimal risk, as he targets opportunities in emerging luxury markets ranging from India to Brazil.

“The idea is that we build an operational platform with a multidisciplinary team that is able to welcome and accommodate a small company and to give them the chance to develop at double, triple the speed of what they would do alone,” he explained during a press briefing after the conference.

“It’s a kind of an escape valve for us to put a little bit of oxygen and air in the organization,” he added.

A Challenger Mentality

It’s part of the challenger mentality he’s bringing to the job as he attempts to carve back market share from larger competitors including LVMH Moët Hennessy Louis Vuitton, Chanel and Hermès International.

“It’s a good position for us to be a challenger. I’ve always done that my whole life. It’s actually more fun, because when you’re a leader, you’re just sitting on the problem and defending the position,” de Meo reasoned.

“When you’re a challenger, you need to be faster, more agile, more innovative – you need to see trajectories that others don’t see to gain a position on the track,” he added.

Among the areas where he thinks Kering could have a first-mover advantage is longevity and wellness, namely through its 4-billion-euro beauty deal with L’Oréal, which was finalized two weeks ago.

“Living longer and aging better is becoming the ultimate need for affluent people,” he said.

Noting the market – estimated to be worth more than 6 trillion euros – remains highly fragmented, he said it was complementary with personal luxury goods, and touted the potential development of “private longevity clubs”: urban and destination-based centers built on safe, scientifically validated protocols.

L’Oréal CEO Nicolas Hieronimus addressed the gathering in a brief video message, describing its alliance with Kering as “a true win-win partnership.”

 

But de Meo made clear that investing in Kering’s existing brands remains the priority, with a clear focus on Gucci.

“Even though Gucci, I would say, should not carry the whole group alone, it remains a brand poised to play among the leaders of our industry,” he said.

While equity analysts were disappointed with the Italian brand’s performance in the first quarter, de Meo said “tangible early signals” promise a lasting improvement. “Gucci’s recovery will be real, because it will be structured,” he said.

The Gucci Conundrum

Kering’s lackluster first-quarter results have put added pressure on the executive. Revenues declined 6.4 percent in reported terms to 3.57 billion euros in the first three months of 2026.

By comparison, revenues at Hermès were down 1.4 percent during the period, while LVMH reported sales in its key fashion and leather goods division declined by 9 percent.

At Gucci, reported sales fell 14.3 percent, off 8 percent in organic terms.

“Luxury brand turnarounds have become more complex, slower, costlier, and far less public‑market‑friendly than in the past,” noted Citi analyst Thomas Chauvet. To wit, Kering shares closed down 3.9 percent on Thursday.

But de Meo argued the brand possesses something money can’t buy: ubiquity. “If you ask ChatGPT what are the most popular Italian brands, it will tell you Ferrari, Gucci and Nutella – and not necessarily in that order,” he said. “Everybody knows Gucci. That’s a huge competitive advantage.”

Under the stewardship of CEO Francesca Bellettini, Gucci has reduced SKUs by 20 percent and is reworking its entire product pyramid, with the aim of adding 1 billion euros in leather goods business by 2030, and 600 million euros from rtw and shoes.

Harsh Truths

Much of that success depends on recovery in China.

De Meo’s assessment of Kering’s recent performance there was harsh. He said Saint Laurent had neglected the Asian giant, while Gucci has used it as “a bit of a trash bin” by looking for easy growth through outlet stores or large boutiques in Tier Two and Tier Three cities.

“We have to go back and to rebound,” he said, noting that Chinese customers had become increasingly discerning, requiring a more sophisticated, experiential approach to retail. “When I go into some Gucci shops in China, it looks like I’m in the house of my grandmother.”

While some Kering brands are already seeing green shoots of recovery in China, he expects the road to recovery to be longer for Gucci. “It’s not going to happen in weeks, but you can probably measure that in months, a year,” de Meo predicted.

He cautioned that Kering’s underperforming brands – which include McQueen, menswear brand Brioni, porcelain maker Ginori 1735 and jeweler Pomellato – have two years to return to profitability.

“To be a luxury brand, you need to make money,” he said. “Otherwise, I eject them from the system.”

However, he had a ready retort for anyone who views him as an outsider with a reputation as a cost killer lacking the finesse to manage luxury brands, with all that entails in terms of craftsmanship and creativity.

“You are underestimating the level of intellectual sophistication that I have when I analyze the situation,” he said, adding that Kering’s success relies on a savvy combination of art and science.

“I’m a product and brand guy first. But because of my experience, I can see that there is a way to make the system more effective – not only more efficient – because there are a lot of things that are simply not developed enough,” de Meo added. “There’s no conflict between the two things in my mind.”

De Meo concluded his presentation by thanking attendees for their “resistance,” joking that he was ready to perform the opera “Aida” at Milan’s La Scala theater next. Looking over at Piccioli, he added knowingly: “I think Pierpaolo wants to smoke a cigarette.”