French luxury group Kering is holding its annual general meeting on Thursday, a few weeks after presenting its strategic plan. The luxury market is losing momentum and is looking for ways to reinvent itself.
Last September, Luca de Meo was appointed Chief Executive Officer (CEO) at the French group’s general meeting. François-Henri Pinault retained the chairmanship of the group. Kering’s portfolio includes Gucci, Saint Laurent, Bottega Veneta and Boucheron.
The former boss of the French automobile manufacturer Renault announced at the time that he would push ahead with the group’s debt reduction. He also wanted to “streamline, reorganize and reposition some of our brands.”
The situation at Kering had become critical. The group had to struggle with high debt and cautious buyers. Sales fell 13 percent to 14.7 billion euros in 2025, while net profit fell more than tenfold.
Almost a year later, de Meo has taken a series of measures to turn things around. At the end of 2025, Kering’s debt amounted to eight billion euros. That is two and a half billion euros less than at the end of 2024. To achieve this, Kering sold, among other things, its beauty division to the French cosmetics group L’Oréal – a transaction worth four billion euros. In addition, the takeover of Valentino was postponed for two years.
In mid-April, the group presented its medium-term strategic plan in Florence. A particular focus is on the main brand Gucci. The Italian fashion house accounts for 40 percent of Kering’s sales. However, the brand has lost popularity in recent years. Sales fell from 10.5 billion euros in 2022 to six billion euros in 2025.
During his presentation to investors, de Meo explained that the solution lies, among other things, in reducing the number of Gucci boutiques. In addition, a stronger focus should be placed on product quality. Since September, Gucci also has a new managing director, Francesca Bellettini. She was previously deputy general manager of Kering.
Another priority is China. The country has long been the growth engine for luxury goods, but the sector has cooled there in recent years. Kering plans to significantly increase marketing and sales budgets there while simultaneously closing sales outlets.
Whether this will be enough to give the company new momentum remains to be seen. The share price has fallen by almost 20 percent since the beginning of the year. The war in the Middle East in particular is putting a strain on luxury companies. However, over the year, the share has gained around 38 percent.
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