Kering's Bold Turnaround Under CEO de Meo
Kering saw a slightly smaller-than-expected drop in fourth-quarter sales as CEO Luca de Meo implements bold strategies to stabilize the company. Facing declining profits and investor pressure, the group aims to boost sales, streamline operations, and improve margins, while managing its high debt and undergoing restructuring.
Kering, the luxury goods conglomerate, has reported a slightly smaller-than-anticipated decrease in fourth-quarter sales, a development widely seen as a positive sign for new CEO Luca de Meo. The former Renault executive is focused on stabilizing the Gucci-owner amid intense investor scrutiny and promises bold decisions to restore margins.
Despite a 10% revenue drop at Gucci, its flagship label, de Meo is optimistic about the company's trajectory, attributing slight sales improvement to new products and handbag sales. The group has also reduced its store network by 75 boutiques, reflecting strategic adaptations to an uncertain business outlook.
Kering's financial challenges remain steep, yet its shares have risen by around 50% since de Meo's appointment. De Meo has taken measures to address debt issues, streamline governance, and generate revenue through strategic divestitures, marking the beginning of a multi-year turnaround aimed at elevating the company alongside industry leaders.
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