The Tamesis
Decoding “ReconKering”
De Meo’s new strategy centers on establishing a “streamlined group platform” made up of five “hubs” rooted in industry, customers, technology, sustainability and support functions. “This is not a question of centralization. This is a question of rebalancing,” he said.
The plan includes restoring a healthier balance sheet by reducing debt, from €10.5 billion at the end of 2024 to €8 billion at the end of 2025. Debt was reduced further today with the completion of the €4 billion L’Oréal deal and the sale of the €700 million Monte Napoleon estate in Milan.
The store network has also been rationalized. After closing 75 of its more than 1,700 stores in 2025, the group plans to close at least 100 more in 2026.
De Meo emphasized that the luxury goods industry has entered a reset phase. “The market has been flat or even slightly down since 2023,” he said. “China contracted by around 20% over the same period, and a rebound has yet to materialize. Against this backdrop, Kering has been more severely affected than most of its peers.”
Kering Group’s retail sales in the Asia-Pacific region will drop by 16% in 2025. Greater China is a top priority. For Kering, this means “double-digit growth in China House’s marketing and commercial activation budget to accelerate awareness, quality, impact and conversion rates”. The group plans to strengthen its product offerings to better align with local tastes and adjust its retail footprint in China to close around 130 net stores by 2030, while prioritizing high-potential locations.
De Meo also announced during his speech that Kering has made a minority investment in Chinese brand Icicle. “Our investment in Icicle is also about making us feel more at home in China and having friends there who can help us understand what’s going on and open doors for us into the Chinese ecosystem,” De Meo said. “That’s very important. I come from the automotive industry and I know what it means to ignore the power of innovation in China.”
De Meo said another priority is new growth relay markets, namely Southeast Asia, India, the United Arab Emirates and Saudi Arabia, as well as Africa, starting with Nigeria, Brazil and Mexico. “The group has an opportunity to play a catalytic role in these markets, particularly where scale takes time to build,” he said.
He also talked about jewellery, a category he expects to double from the current €1.2 billion by 2030, led by four major brands: Boucheron, Pomellato, DoDo and Qeelin, as well as Gucci, Saint Laurent and Bottega Veneta.
As for its fashion brands, de Meo continued to review strategy brand by brand and touched on the future of the beauty category.
