The Tamesis
“So we are downsizing, repositioning, refocusing and trying to recover from the situation that allowed McQueen to grow and open 135 stores. McQueen Being treated the same as the big brands, maybe it’s not one; it should be closer to its brand image and do something really extraordinary. At one point, sneakers were 80% of the revenue. It means that the structure is too heavy for it. The brand does have potential, but it needs to be centered around what the market expects of us,” he added.
store closed
Kering reported that its brands will close a net 75 stores by 2025, mainly in Asia, and de Meo plans to close more stores. Kering Group will further reduce its retail scale in 2026 and has planned to close 100 retail stores. Further reductions are still under discussion. de Meo said the store count for its largest brand, Gucci, would increase from about 600 stores (before the rationalization plan) to about 450 stores.
jewelry potential
Jewelry currently accounts for only a small part of Kering’s business (the combined revenue of Kering’s jewelry brands Boucheron, Pomellato, Qeelin and DoDo is about 1 billion euros), but de Meo sees huge potential – jewelry has proven resilient during downturns in the luxury industry, and he is committed to reducing the group’s dependence on fashion cycles.
“Acquisition of jewelry manufacturer Raselli Franco [in December 2025] Strengthening our industrial capabilities in areas where we see huge potential. It gives us more control, more expertise and more ability to scale, and that’s just the beginning,” he told analysts.
He added: “A very open business is the business we can do with our fashion brands in the category, from custom jewelery to fine jewellery. Take Gucci for example. Ten years ago, Gucci was doing three times as much business in this category as it is now. So if you have an engine that can help you develop the right products and the right collections, then that’s a no-brainer, right?”
Longevity becomes “the next luxury”
In October, Kering Group announced the sale of Kering Beauté to L’Oréal for 4 billion euros. As part of the deal, a 50-50 joint venture on longevity was agreed, with the companies saying at the time that they would work together to “combine L’Oréal’s innovation capabilities with Kering’s deep understanding of the luxury customer to create cutting-edge experiences and services.”
“I think this is part of the ‘next luxury’ package,” DeMeo told reporters on Tuesday. “I believe this is going to be one of the areas where people with significant purchasing power will choose to spend. And I think we do have an opportunity to create something that doesn’t exist yet. That excites me because it’s a bet – but it’s also one of the areas where we can generate surprise, growth and profitability.”
How to win in China
When asked by reporters about his views on the Chinese market, De Meo said: “I think China will always be a country with an important and growing luxury goods market. […]. The question is, where will they spend their money? Will they spend their money on local brands or experiences? It’s true that we no longer see the almost compulsive forms of consumption that existed a decade ago, but maybe that’s normal. Of course, the key is whether Gucci can become a popular brand in China again. I think it involves offering products at the level expected from luxury brands because Chinese consumers have become very sophisticated. “De Meo also pointed out that they are formulating a plan to further expand Yves Saint Laurent’s business in China.
Asked how Kering planned to win traffic amid fierce competition in China, referring to Louis Vuitton’s huge, ship-shaped flagship store in Shanghai that opened last year, de Meo responded: “We need to put effort into producing products and meeting the standards of quality and creativity that the Chinese expect. That’s the first step, even before thinking about building a cathedral, a ship or a plane.”
Valentino deal
In September 2025, Kering Group and Mayhoola jointly announced the postponement of Kering Group’s plan to fully acquire Valentino, thus postponing Kering Group’s major acquisition. Under the new terms, Kering has the option to acquire 100% of Valentino’s share capital before 2029. (King has been a minority shareholder in Valentino since 2023.)
