From Kering To Prada, How The Smartest Houses Are Turning Strategy Into Strength
In a week when the industry’s pulse felt like it was running on espresso, one thing became clear: luxury is learning to pivot with purpose.
Kering made the boldest move of the season, selling its beauty division to L’Oréal for $4.6 billion. It’s a move that might once have looked like retreat, but under new CEO Luca de Meo, it reads as strategy. De Meo is moving quickly—streamlining, focusing, and sending a clear message that the group’s next chapter will be defined by speed and precision, not nostalgia. Investors clearly approved: Kering shares surged nearly 9 percent, the best performance among the global luxury stocks.
Prada Group, meanwhile, continues to deliver what has become its quiet superpower: consistency. Nineteen consecutive quarters of growth is a record any CEO would envy, but the real headline lies in balance. Miu Miu’s retail sales jumped 41 percent, carrying both momentum and mood, while Prada itself softened slightly but held its ground with discipline—full-price focus intact, storytelling sharper than ever.
Ermenegildo Zegna Group offered another kind of masterclass: the art of steady acceleration. Its direct-to-consumer business grew 9 percent in the quarter, proving again that the brands that invest in relationships—store by store, client by client—build the kind of resilience that algorithms can’t measure. The house’s leadership changes and continued expansion of its “Salotto” concept underline that quiet, grounded confidence is its greatest luxury.
Hermès, predictably, remained Hermès. Third-quarter revenues rose 9.6 percent at constant exchange, driven by leather classics and long waiting lists that show no sign of shortening. It may have underperformed analyst expectations by a hair, but when you’re selling time itself, there’s no need to rush the clock.
And then there’s Ferragamo, operating without a CEO but not without resolve. Modest growth, particularly in its direct-to-consumer channel, and double-digit e-commerce gains prove that even when leadership is in transition, commitment and creativity can keep the lights not just on—but glowing.
Looked at together, these stories chart a new kind of map for the luxury industry. The era of expansion for expansion’s sake is over. What’s emerging instead is a quieter, more intentional form of growth—one defined by clarity, focus, and an understanding that resilience doesn’t come from size, but from sense.
The markets seem to agree. While some luxury giants are still adjusting to the new tempo of global demand, the ones gaining ground are those that know when to move quickly and when to stay still. Strategy, not scale, is becoming the new measure of strength.
Fashion, like the markets, rewards those who can adapt without losing direction. The lesson from this week? Sometimes the boldest growth strategy is restraint—and the smartest risk is knowing which game you’re really playing.
Here’s to the houses that pivot with purpose and lead with intention. The path forward belongs to those who can balance imagination with intelligence, speed with soul.
Warm Regards,
Kenneth Richard
Chief Impressionist
