Luca de Meo, Kering's CEO since September, is undertaking a significant turnaround effort for the luxury conglomerate, which owns brands like Gucci, Saint Laurent, and Balenciaga. His primary goal is to double the company's operating margin from its 2025 level of 11%, a challenging ambition for the former auto industry executive.
De Meo has rapidly addressed Kering's balance sheet by selling assets and has restructured management, bringing in former auto industry colleagues. The immediate focus has been on stabilizing the company's financial position, but the more complex and critical task now is to revive growth, particularly at Gucci, which has been a major revenue driver but has seen its performance wane.
This turnaround comes at a difficult time for the luxury market, exacerbated by global economic uncertainties and conflicts. Rival LVMH reported subdued first-quarter sales, highlighting the challenging business environment. De Meo is expected to provide further insights into his strategy at Kering's upcoming capital markets day in Florence, the birthplace of Gucci.
