Luca de Meo’s restructuring signals a leaner, sharper future for Gucci, Saint Laurent, and Balenciaga
Kering is embracing disruption as the first step toward revitalization. Under CEO Luca de Meo, the group announced plans to shutter at least 100 underperforming stores this year, a continuation of the decisive restructuring that has defined his tenure since September. Speaking after the release of 2025 results, which showed a net loss of 29 million euros, de Meo framed the downturn as a cyclical low point and an inflection for future growth: “This revenue level reflects the low point of the cycle and the starting point of our rebound,” he said. His optimism, combined with strategic divestments—including the sale of Kering Beauté to L’Oréal and stakes in prime real estate—sent Kering shares soaring, signaling that investors are responding to both vision and velocity.
The campaign for reinvention is perhaps most visible at Gucci, which, despite a 10 percent decline in organic revenue, shows signs of renewed vigor ahead of creative director Demna’s Milan runway debut on February 27. De Meo is buttressing these creative efforts with structural changes: the appointment of Francesca Bellettini as president and CEO, the creation of transversal brand positions, and a cross-house workshop designed to break down hierarchies between creative directors and wider teams. “There is a freshness to our approach,” de Meo remarked, referencing the group’s new organizational transparency. “What really makes me optimistic is that there’s a lot of common sense in the conversations we’re having at Kering. I mean, the level of bulls–t has decreased considerably.”
Beyond fashion, de Meo is eyeing luxury adjacent categories, including wellness and jewelry. Strategic acquisitions, such as the Raselli Franco Group, aim to expand Kering’s foothold in high-margin jewelry while preserving artisanal craftsmanship. The approach blends pragmatism with ambition: underperforming stores are closed, but heritage and creative identity are preserved. “Think of it as a team sport. You put a football or basketball team on the field, and every player has a clearly defined role. They wear the same colors—they’re all part of Kering—but they contribute in different ways,” he said, demystifying the often-mythologized role of creative directors. For Kering, the short-term contractions appear less like retreat and more like the calibration necessary for a luxury renaissance.
