Kering unveils next phase of turnaround strategy
Luxury group Kering has unveiled ReconKering, the next phase of its strategy to return to growth by “reigniting desirability, reinforcing operational excellence, and leading the next era of luxury.”
The move follows the release of its first-quarter results, when the group reported a 6% drop in revenue to €3.5 billion, driven by a weak performance at Gucci. Kering’s portfolio also includes Saint Laurent, Bottega Veneta, Balenciaga, McQueen and Brioni.
Subscribe to TRBKering’s turnaround began last year with the appointment of new chief executive Luca de Meo. In recent months, the group has reorganised its structure, tightened financial discipline, clarified its product and pricing, streamlined its store network, strengthened oversight, and sped up progress in key strategic areas.
Speaking of the next phase, de Meo said: “ReconKering is our way of reconnecting with what makes Kering unique, while embracing what luxury is becoming.
“True Luxury is our mission, and Next Luxury is our horizon. This plan brings the two together with the agility of a challenger, a renewed focus on desirability and a stronger commitment to execution.
“We approach this next phase with ambition, humility and a deep confidence in our teams, who will be the driving force behind the group’s return to growth and improved performance.”
Under the plans, Kering aims to improve Gucci’s desirability by strengthening its leather goods offering and creating a more cohesive range across ready-to-wear, shoes, and jewellery, all underpinned by higher quality standards.
Kering has also announced the acquisition of a minority stake in Icicle owner ICCF in which it will support Icicle’s next phase of growth, including international expansion.
