Kering's Strategy Shift: De Meo's Vision to Revitalize Luxury Giant

Kering's CEO Luca de Meo outlines an 18-month plan to rejuvenate growth by reducing dependence on Gucci, downsizing retail, and enhancing brand synergies. The strategy includes focusing on core luxury fashion following the sale of the beauty division. A comprehensive plan awaits investor presentation next spring.

Kering's chief executive, Luca de Meo, has unveiled a strategic roadmap to steer the luxury house back to growth, notably by diminishing its reliance on Gucci and recalibrating its retail network, as per internal notes accessed by Reuters.

The memorandum, part of a comprehensive internal strategy dubbed "ReconKering," charts de Meo's ambitions for corporate revival following a pivotal $4.7 billion euro divestment in its beauty segment to L'Oreal, prioritizing its premium fashion core.

Looking to revitalize Kering's brand portfolio, de Meo has set an 18-month timeframe for recovery, aiming for operational excellence within three years, with a strategic presentation slated for investors in the coming spring.

(With inputs from agencies.)