Kering Revamps Strategy to Reignite Gucci and Boost Profits

In a bid to reassure investors and revitalize Kering's flagship brand, Gucci, CEO Luca de Meo has pledged to more than double the luxury group's operating profit margins. Addressing economic uncertainties and the Middle Eastern conflict's impact, de Meo's strategy involves optimizing store networks and boosting the jewelry segment.

Despite a 2.5% dip in Kering shares on the Paris stock market, de Meo remains confident in his plan. Gucci, which accounts for a substantial portion of Kering's profits, has struggled in recent years due to shifting consumer preferences. Under the leadership of new designer Demna, efforts are underway to restore Gucci's iconic status.

De Meo's vision includes enhancing Gucci's client focus and product offerings. With the geopolitical landscape complicating this turnaround, de Meo is also advancing Kering's eyewear segment, collaborating with Google to develop luxury smart glasses. The company remains cautious on acquisitions, emphasizing quality and supply chain security.