Kering: Luca de Meo unveils 'ReconKering' plan, targets doubled margin
Source · Luxury Goods desk
— Summary
Kering CEO Luca de Meo unveiled his strategic plan in Florence on 16 April 2026, branded 'ReconKering' around the motto 'True Luxury, Next Luxury'. True luxury is authenticity and craftsmanship; next luxury is new technologies, new consumers and new categories. Kering commits to doubling its recurring operating margin — 11.1% in 2025 — over the medium term.
The group is restructured into four divisions (fashion and leather, jewellery, eyewear, group services) supported by five cross-company platforms (industrial, client, technology, sustainability and support functions). Gucci will push further into leather goods; Saint Laurent strengthens menswear and expands in Asia; Bottega Veneta extends beyond leather into full womenswear and menswear; Balenciaga is repositioned as an innovation brand for the next generation. Jewellery houses Boucheron, Pomellato, DoDo and Qeelin merge into a single integrated unit anchored by the pending acquisition of manufacturer Raselli Franco. Kering Eyewear partners with Google to lead in 'luxury smart eyewear'.
To reduce dependence on Gucci — which lost a third of its revenue in two years and halved group profits — a new House of Wonders fund will back young non-European brands, including Chinese labels, and Kering has teamed with the Italian manufacturing union H Moda. Operational discipline includes fewer but better-located stores, simplified assortments, tighter production and centralised media buying. Source: Les Echos, 16 April 2026, Philippe Bertrand.
The story in one line: Seven months into the job, ex-Renault boss Luca de Meo gave investors in Florence his strategic blueprint for Kering: a disciplined reconquest around ‘True Luxury’ (craftsmanship) and ‘Next Luxury’ (technology and new markets) — with a medium-term pledge to double recurring operating margin.
Key numbers
Recurring operating margin 11.1% in 2025, to be doubled medium-term.
4 divisions: fashion & leather, jewellery, eyewear, group services.
Gucci lost ~1/3 of revenue in two years and halved Kering’s profits.
9 Italian regions for the new Academy of Excellence training artisans.
Raselli Franco acquisition will anchor the integrated jewellery manufacturing platform.
Why it matters
The plan isn’t a big bang but a sharp strategic focus: reduce ‘Gucci dependence’, reposition every house, centralise what can be centralised (media buying, box-set SKUs, shared ateliers for Saint Laurent and Gucci jeans) while protecting artisanal craftsmanship. Gucci turns to leather goods, Saint Laurent pushes menswear and Asia, Bottega Veneta becomes a full-vestiary brand, Balenciaga plays the innovation card. Jewellery (Boucheron, Pomellato, DoDo, Qeelin) is unified. Kering Eyewear partners with Google on ‘luxury smart eyewear’. A new House of Wonders fund will take stakes in young non-European, including Chinese, brands — an explicit hedge against over-reliance on Gucci.
Takeaway
De Meo is betting that discipline plus brand-portfolio diversification can restore margins without abandoning craftsmanship. The proof will be in Gucci’s revenue trajectory and the margin cadence over the next 24 months.
Source: Les Echos, 16 April 2026, Philippe Bertrand.