Kering, the luxury conglomerate, has reported a return to sales growth, signaling a potential stabilization after facing challenges primarily due to the underperformance of its flagship brand, Gucci. This positive shift follows a period where Gucci's sales had been in decline, affecting Kering's overall financial results. The company's shares jumped following the announcement, reflecting investor optimism.
This turnaround comes under the leadership of new CEO Luca de Meo, who took over in early 2026. De Meo has been focused on restructuring and implementing strategies to boost profitability and reduce Kering's over-reliance on Gucci. Analysts had previously noted significant sales plunges at Gucci, with one report indicating an 8% drop in the first quarter of 2026, partly attributed to geopolitical factors such as the Iran war. In October 2025, Kering reported a 5% drop in third-quarter sales, which was better than expected at the time.
De Meo has communicated internally about the need for Kering to "kick the Gucci habit," emphasizing diversification and strengthening other brands within the portfolio. His goals include doubling profitability, indicating a significant strategic shift within the company. This recent return to growth, even if stemming a decline, is perceived as a positive step for Kering and its new leadership.
