What: Kering is implementing aggressive restructuring and leadership changes to restore profitability after significant sales declines, particularly at Gucci.

Why it is important: The group’s strategy underscores how leading luxury brands are rebalancing portfolios and management structures to regain competitiveness in a challenging environment.

Kering is undergoing a significant transformation as it seeks to rebuild profitability following a period of declining sales, most notably at its flagship brand, Gucci. The group has responded to these challenges by accelerating cost-cutting initiatives, including store closures and asset sales, while also investing in brand revitalisation. The appointment of Luca de Meo as CEO marks a pivotal leadership change, bringing a renewed focus on operational efficiency and strategic repositioning. Despite persistent revenue declines and a net loss in 2025, these restructuring efforts have begun to show early signs of stabilising performance, with Gucci’s sales decline slowing in recent quarters. Kering’s approach reflects a broader shift within the luxury sector, where agility, decisive action, and a willingness to overhaul management structures are becoming essential for survival and future growth. The company’s commitment to doubling profitability signals both ambition and recognition of the need for fundamental change in response to evolving market dynamics and consumer expectations.

IADS Notes: Kering’s ambition to double profitability comes amid significant transformation and challenge, as reflected in a series of financial setbacks and strategic pivots reported throughout 2025 and early 2026. In April 2025 (BoF), Kering disclosed a 14% drop in group revenues and a 25% decline at Gucci, leading to accelerated cost-reduction measures, including store closures and restructuring. By July 2025 (WWD), net profit had fallen 46% in the first half, prompting the closure of 80 stores and continued brand portfolio adjustments. The appointment of Luca de Meo as CEO in September 2025 (BoF) marked a decisive leadership shift, focusing on operational efficiency, debt reduction, and repositioning of key brands. October 2025 (WWD) saw a further 10% decline in group revenues, with intensified restructuring and asset sales, while February 2026 (WWD) confirmed a net loss for 2025 and further store closures. These developments highlight Kering’s commitment to restoring profitability through agility, decisive action, and renewed strategic focus, even as the luxury sector faces persistent market headwinds and evolving consumer expectations.

Kering aims to double profitability in turnaround push