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business18h ago
Kering looks to double profits as it unveils ambitious turnaround plan to revive Gucci
- Kering unveils a turnaround plan aiming to more than double its 2025 recurring operating margin to lift profitability.
- Gucci stores are to be renovated or relocated to improve sales density by 2030 as part of the plan.
- Kering intends to cut inventory by 1 billion euros in the coming year to streamline operations.
- Debt reduction steps have begun, including the March sale of its beauty division to L’Oréal for 4 billion euros.
- Gucci remains the central issue as it has posted the 11th straight quarter of organic sales decline.
- De Meo says Gucci should be unmistakable, not louder or more complex, focusing on craftsmanship and identity.
- The plan targets expanding other brands to reduce dependence on Gucci, including Yves Saint Laurent, Bottega Veneta, and Balenciaga.
- The company plans to double leather goods and handbags’ contribution by 2030 to 20% from 10%.
- Gucci’s market recovery is tied to addressing structural and cyclical headwinds in luxury demand.
- Kering is refocusing its brands around clearer narratives while preserving Gucci's heritage and fashion authority.
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