“We have created the conditions for Gucci’s revival”, said Kering CEO Luca de Meo during the French luxury group’s General Annual Meeting, held on 28 May. Kering appears determined to diversify its sources of revenue, reducing its dependence on fashion — and on Gucci in particular — by focusing on new sectors with greater growth potential. Which sectors? The group specifically highlighted jewellery, eyewear, wellness and longevity. It also plans to concentrate on the most promising markets: Mexico, Brazil, Africa, the Middle East, India and South-East Asia. Meanwhile, progress has been made in the Alexander McQueen redundancy dispute.
Kering cuts debt by EUR 2 billion
The statements made during the shareholders’ meeting largely echoed the ReconKering strategy unveiled in Florence in mid-April. De Meo expressed confidence in the group’s prospects, arguing that Kering is best positioned for the “luxury of the future” thanks to its lean organisation, agility and challenger mindset. Having reduced Kering’s debt from EUR 10.5 billion to EUR 8 billion through disposals, renegotiations and other measures, the former Renault executive now faces the challenge of reviving Gucci. De Meo voiced his full confidence in the leadership duo of CEO Francesca Bellettini and creative director Demna Gvasalia.
Gucci in Formula 1
“Over the past nine months, we have focused on streamlining, reorganising and repositioning our brands. We have created the conditions for Gucci’s revival”, de Meo said, according to MF Fashion. Kering plans to renovate around two-thirds of its stores across all brands by 2030. However, as Vogue reports, “the percentage is higher for Gucci”, de Meo clarified. At the same time, Gucci is entering Formula 1 through a partnership with Alpine. WWD reports that the former Renault executive — whose former company owns Alpine — acknowledged that he helped facilitate the agreement. From the 2027 season onwards, the team will race in Gucci colours under the name Gucci Racing Alpine Formula 1 Team (pictured celebrating the partnership).
New sectors, new markets, less fashion
The remarks by de Meo, chairman François-Henri Pinault and chief operating officer Jean-Marc Duplaix reveal two key themes. The first is that fashion will become less central to the group’s financial performance. Kering sees stronger growth potential in other sectors, namely jewellery, eyewear, wellness and longevity. The development of these activities will be supported by the group’s collaboration with L’Oréal. The second theme, again linked to diversification, is that China will become less critical to Kering’s future growth. The group is planning expansion across six emerging markets: Mexico, Brazil, Africa — with particular attention to Nigeria — the Middle East, India and South-East Asia.
The McQueen case
Almost simultaneously with the shareholders’ meeting, positive developments emerged regarding the McQueen restructuring process. Trade unions and management have reportedly reached a draft agreement that will now be submitted to employees. The proposal includes non-opposition to redundancies and voluntary severance incentives. According to La Nazione, the number of affected employees has fallen from 54 to 35 across Scandicci, Novara and Parabiago, thanks to resignations and retirements. Most of those leaving are expected to do so voluntarily under the incentive scheme. The agreement is scheduled to be formally ratified at the Ministry on 4 June.
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