Kering and Gucci: Luca de Meo’s Strategy for a Luxury Revival

Kering has reported a gradual improvement in revenue for the first quarter of 2026, signaling a period of focus on execution as the luxury conglomerate attempts to stabilize its financial trajectory. The results follow a period of volatility and a strategic pivot led by CEO Luca de Meo, who is tasked with reducing the group’s heavy financial reliance on its largest brand, Gucci.

The “ReconKering” Strategy

In an internal memo circulated on November 18, 2025, Luca de Meo introduced a roadmap known internally as ReconKering. The plan aims to transform the company from within to build a leaner and more competitive structure for the next decade. A central pillar of this strategy is the rebalancing of Kering’s portfolio to ensure the group is not orbiting around a single revenue pillar.

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De Meo identified the group’s overexposure to Gucci as a vulnerability. While Gucci has historically served as the conglomerate’s financial engine, slowing sales and frequent creative shifts have diminished its role as the eternal sun of the group. The new strategy seeks to elevate other maisons—including Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen—to play a stronger role in overall value creation.

Operational Overhaul and Rationalization

The “ReconKering” plan moves away from growth for growth’s sake in favor of industrial discipline and a focus on excellence. To achieve this, de Meo has outlined several structural and operational changes:

• Closing underperforming retail stores to rationalize the physical footprint.
• Integrating operations across different brands to eliminate redundancies.
• Reinforcing transversal platforms, specifically in the areas of logistics, data, CRM, and production.
• Accelerating efficiencies within core global functions.
• Aligning creative direction more closely with business priorities.
• Developing integrated supply chains.

According to the internal roadmap, these measures are intended to create a more sustainable model capable of competing in a market characterized by tightening margins and the increasing necessity of personalized consumer experiences.

The Gucci Challenge

Despite the broader group’s focus on diversification, the revival of Gucci remains a critical hurdle for de Meo. Bloomberg has reported that Gucci sales have fallen as the long-awaited revival of the brand has been slow to take shape. This decline underscores the difficulty of pivoting the brand’s creative and commercial direction while maintaining its market position.

The leadership team tasked with this recovery includes Gucci CEO Francesca Belettini, working alongside other brand heads such as Cédric Charbit of Saint Laurent and Gianfranco Gianangeli of Balenciaga. The objective is to return the French luxury group to growth by stabilizing Gucci while simultaneously scaling the other houses in the portfolio.

Executive Transition

The appointment of Luca de Meo represents a shift in leadership style for Kering. De Meo, a longtime automotive executive, has spent his first months as CEO addressing debt problems and implementing the “ReconKering” framework. His approach emphasizes a transition toward a portfolio built on coherent storytelling and operational efficiency rather than simple scale.

The first-quarter 2026 revenue figures suggest that the group is beginning to see the effects of this execution-focused approach, though the long-term success of the strategy depends on the ability of the non-Gucci brands to offset the volatility of the group’s primary revenue driver.