Decoding “ReconKering”
De Meo’s new strategy is centered around establishing a “streamlined group platform”, structured with five “hubs” rooted in industry, client, technology, sustainability, and support functions. “It is not a question of centralization. It’s a rebalance,” he said.
The plan involves restoring a healthier balance sheet by reducing the debt, which went from €10.5 billion at the end of 2024 to €8 billion at the end in 2025. It’s further reduced today with the closing of the L’Oréal deal, worth €4 billion, and the sale of real estate on Montenapoleone in Milan worth €700 million.
There are also store network rationalisations. After closing 75 of its more than 1,700 stores in 2025, the group plans to close at least another 100 in 2026.
De Meo emphasized that the luxury industry has entered a phase of reset. “Since 2023, the market has been flat to slightly negative,” he said. “China contracted by around 20% over the same period, and the rebound has not yet materialized. In this context, Kering has been more severely impacted than most of its peers.”
Kering retail sales in Asia-Pacific tumbled 16% in 2025. Greater China is a priority. For Kering, this means “a double-digit increase in marketing and commercial activation budget for the houses in China, to accelerate awareness, quality, reach, and conversion”. The group plans to sharpen its offer to better align with local tastes, and rightsize its retail footprint in China, with around 130 net closures by 2030, as it prioritizes high-potential locations.
De Meo also announced during the presentation that Kering took a minority investment in Chinese brand Icicle. “Our investment in Icicle is also about feeling more at home in China, and having friends there who can help us understand what is going on, opening doors into the Chinese ecosystem,” de Meo said. “This is very important. I come from the automotive industry, and I know what it means to neglect the innovation power of China.”
Another priority, according to de Meo, is the new-growth relay markets, namely Southeast Asia, India, the UAE and Saudi Arabia, Africa starting with Nigeria, Brazil, and Mexico. “There’s an opportunity for the group to play a catalytic role in these markets particularly where scale will take time to build,” he said.
He also talked about jewelry, a category he sees doubling by 2030 from €1.2 billion today, led by its four maisons Boucheron, Pomellato, DoDo and Qeelin, as well as the development of jewelry at Gucci, Saint Laurent, and Bottega Veneta.
As for its fashion houses, de Meo went on to review strategies brand by brand, and spoke to the future of the beauty category.
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