Kering unveils new strategy as it focuses on reigniting desirability

Kering has unveiled a new corporate strategy that focuses on reigniting desirability, improving organisational structure and building the foundations for the "next era of luxury".

The new strategy, titled "ReconKering", comes after the luxury group reported a 6% decline in revenues over the past year, with mixed regional performance and uneven brand momentum.

"Against a backdrop of ongoing geopolitical and economic uncertainty, Kering is prioritising agility and execution, aiming to strengthen brand strategies and operational support across its houses. The group’s objective for 2026 remains to return to growth and improve margins," the group commented on the results.

Its new strategy further reinforces these priorities, focusing on rebuilding brand desirability, sharpening execution, and creating a more disciplined operating model, according to the group.

The strategy is defined by two pillars: reaffirming Kering's foundations in "True Luxury" by focusing on "creativity, craftsmanship, cultural relevance and product excellence", while also building internal resources to lead the way for "Next Luxury", defined by "new technologies, new client expectations, new markets and new categories."

The company outlined specifically what this would look like across its major fashion houses, including Gucci, its most profitable one, which, however, recorded a 14% drop in revenues in its most recent financial filings to €1.347 billion (£1.1 billion).

Its plans for Gucci include focusing on "reigniting desirability" by highlighting its unique brand identity with "clear creative direction" and reshaping its product selection - both by strengthening its leather goods category and creating more "coherent" and higher-quality ready-to-wear, shoes and jewellery items. It will also introduce more regional strategies to drive relevance and streamline its distribution model.

It also announced how this strategy would be implemented for its struggling McQueen brand, which announced wider restructuring, redundancies in its UK office, and the relocation of its flagship Old Bond Street store earlier this year. The brand will be reshaped into a "leaner, more disciplined model", according to Kering, with more focused collections that focus on women’s ready-to-wear, tailoring and eveningwear, as well as a "rightsized retail network and organisation".

Kering has already entered the first phase of its strategy, called "Reset", and until the end of 2026 will be focusing on continuing to reshape its organisational architecture, operational efficiencies, reinforcing financial discipline and sharpening its product.

"ReconKering is our way of reconnecting with what makes Kering unique, while embracing what luxury is becoming. True Luxury is our mission, and Next Luxury is our horizon," said Luca de Meo, CEO of Kering.

"This plan brings the two together with the agility of a challenger, a renewed focus on desirability and a stronger commitment to execution. We approach this next phase with ambition, humility and a deep confidence in our teams, who will be the driving force behind the Group’s return to growth and improved performance."