Kering CEO Luca de Meo presented his 'ReconKering' strategy at the company's Capital Markets Day in Florence on Thursday, aiming to reposition the luxury group as a top challenger. The plan targets doubling the recurring operating margin to around 2030 and outperforming market sales growth. De Meo, who joined from Renault last year, highlighted recent challenges including flat first-quarter sales and Gucci's decline.
Luca de Meo outlined ReconKering to about 200 analysts and reporters at Stazione Leopolda in Florence. The three-and-a-half-hour presentation, followed by Q&A sessions, focused on streamlining operations into five hubs: industry, client, technology, sustainability, and support functions. 'Being a challenger is a good position... you need to be faster, more agile, more innovative,' de Meo said, drawing from his Renaulution success at Renault, where he started in 2021 after joining Kering on September 15, 2025. He recognized leaders from Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, and Boucheron onstage, with chair François-Henri Pinault in attendance. Kering has faced headwinds, with sales flat in the first quarter and an 8% drop at Gucci, its largest brand representing over 40% of revenue. Shares fell sharply Wednesday after missing expectations. De Meo announced prior moves like selling the beauty business to L’Oréal for €4 billion, real estate for €700 million, and postponing a full Valentino acquisition, reducing debt from €10.5 billion at end-2024 to €8 billion. The group closed 75 stores in 2025 and plans 100 more in 2026. Priorities include China, with a minority stake in Icicle, doubled marketing there, and 130 net store closures by 2030. New markets like Southeast Asia, India, UAE, Saudi Arabia, Nigeria, Brazil, and Mexico are targeted. Jewelry sales aim to double from €1.2 billion by 2030. Brand plans feature Gucci rebuilding desirability with €1 billion extra leather goods revenue, Saint Laurent doubling Asia business via the Mombasa bag, and a L’Oréal joint venture for luxury wellness centers. De Meo launched House of Wonders to back adjacent emerging brands selectively.