Luca de Meo’s re-launch path at Kering, based on three strategic directions, continues: debt reduction, Gucci relaunch and expansion into emerging markets. At the French luxury group’s annual meeting with shareholders yesterday at the company’s Paris headquarters, just over a month after Capital Markets Day in Florence, the CEO took stock of achievements to date and future priorities. As MFF reports , at the center of the medium- to long-term growth strategy are emerging markets-the so-called “6-pack,” which includes Mexico, Brazil, Africa, the Middle East, India and Southeast Asia-along with China and new opportunities in the wellness and longevity segments.
“The priority since my arrival at the company has been to reduce debt, which in 2024 had reached 10.5 billion euros,” de Meo recalled. “In 2025 we managed to reduce it by about 2.5 billion, bringing it to 8 billion.” This result was achieved through a series of strategic operations, including the sale of the Kering Beauté division to L’Oréal for 4 billion euros, the partial sale of prestigious real estate assets, and the postponement by two years of the Valentino acquisition, initially agreed in the summer of 2023. “In these nine months we have also focused on rationalizing, reorganizing and redefining the positioning of our brands. We have created the conditions for the rebirth of Gucci,” the CEO continued. The brand, which accounts for about 40 percent of Kering’s total revenues, has gone from 10.5 billion in revenues in 2022 to about 6 billion recorded in the last fiscal year. The strategy outlined by de Meo includes a reduction in the number of boutiques and an increased focus on product quality and desirability.
“China remains a key market, but it is entering a more selective phase. We will have to invest more on the desirability of the maisons, increasing marketing budgets and optimizing the retail network,” the manager explained to shareholders. At the same time, in emerging markets the group sees particularly favorable dynamics, especially in Africa and India. Responding to a question from investors, both de Meo and chief operating officer Jean-Marc Duplaix highlighted the long-term prospects of the African continent, with a particular focus on Nigeria, which is already at the center of the expansion strategies of other major luxury players such as LVMH. Among the new development directions, Kering is also looking with growing interest at the wellness and longevity segments. “If I have to set priorities outside of our traditional businesses, I prefer to focus on these areas, which we will start exploring together with L’Oréal,” de Meo explained. More cautious, however, is his position on hospitality, which he describes as a very trendy sector in fashion, but also very different from the fashion business and not necessarily profitable.
The meeting also approved the appointment of Mandarin Oriental Group CEO Laurent Kleitman and former Chanel executive Marie-Hélène Chenut to the company’s board. Concurrently, Maureen Chiquet, Yonca Dervisoglu and Jean-Pierre Denis left. Shareholders also approved the distribution of an ordinary dividend of 3 euros per share and an extraordinary dividend of 1 euro linked to the closing of the transaction with L’Oréal, expected in the first quarter of 2026. “Our ambition is to return to sustainable dividend growth as early as 2026,” said Chief Financial Officer Armelle Poulou.
In closing, responding to a question about the possibility of a stock split, Duplaix ruled out operations in the short or medium term, stressing that the priority remains the execution of the ReconKering strategy and all the group’s energies are focused on this goal. Finally, Chairman François-Henri Pinault reiterated his full support for management’s plan: “Gucci will remain our main focus, but we also strongly believe in the potential of the group’s other maisons, as well as in opportunities related to jewelry, eyewear and wellness.”
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