ReconKering: Kering is targeting the Next Luxury segment
After just a short time in the Palexpo halls at Watches & Wonders 2026, it’s easy to forget that there’s a world of luxury beyond this ticking, dazzling, and sparkling bubble—for example, at Kering.
Since former Renault executive Luca de Meo took over as CEO of Kering last summer, the luxury goods group—which owns brands such as Gucci, Saint Laurent, and Balenciaga—has shown great momentum.
These initiatives range from the sale of the beauty division to L’Oréal and the launch of Kering Jewelry to the hiring of another automotive executive. The overarching goal is to get Kering back on track—especially since Gucci has been struggling for some time—and steer the company back toward market leadership.
The figures for the first quarter of the new year underscore the necessity of this approach. At 3.568 billion euros, revenue was down six percent (on a reported basis) from the same period last year. This marks a continuation of the downward trend.
The three-step strategy announced today at Capital Markets Day is called ReconKering and is described using the keywords “True Luxury” and “Next Luxury.”
Following the restructuring of the organizational structure, the company announced that it now plans to strengthen financial discipline, refine its product and pricing strategy, optimize its retail network, improve operational management, and significantly accelerate progress in key strategic areas.
Luca de Meo explains: “ReconKering is our way of reconnecting with what makes Kering unique, while embracing what luxury is becoming. True Luxury is our mission; Next Luxury is our horizon. This plan brings both together with the agility of a challenger, a renewed focus on desirability, and a stronger commitment to execution. We are embarking on this next phase with ambition, humility, and great confidence in our teams, who will be the driving force behind the Group’s return to growth and improved performance.”
In short, this involves a value-driven rather than volume-driven relaunch strategy, which is to be implemented in three phases:
- Reset (through the end of 2026): Restoring discipline, efficiency, and strategic clarity.
- Rebuild (through the end of 2028): A return to sustainable growth and improved profitability.
- Reclaim (by the end of 2030): Regain leadership in the “Next Luxury” segment.
