Kering's Turnaround Hopes: De Meo's Bold Strategy Amid Luxury Slowdown
French luxury group Kering, under new CEO Luca de Meo, reported slightly better-than-expected fourth-quarter sales, triggering a significant surge in its share price. Despite ongoing challenges with flagship brand Gucci, hopes for recovery are pinned on new creative leadership as strategic restructuring efforts continue.
French luxury conglomerate Kering experienced a major boost in investor confidence as it reported a more moderate fourth-quarter sales decline than anticipated. This uptick is seen under the fresh stewardship of CEO Luca de Meo, who has vowed to steer the company through a challenging luxury market environment.
Despite Gucci’s continued sales difficulties, a cautious optimism permeates as newly appointed creative director Demna prepares to unveil his debut collection. Investors are buoyed by de Meo's assurances that growth and margin improvements across brands can be expected by 2026.
In response to enduring financial strains, de Meo has initiated strategic moves to alleviate Kering’s debt woes, including a substantial sale to L'Oréal. As the company navigates a transformative period, its performance in the fiscal year 2025 will be pivotal in reaffirming its upward trajectory.
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