Kering has unveiled the next phase of its turnaround strategy as it to return to growth, following a weak first quarter driven by continued pressure at Gucci.
The owner of Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen and Brioni said its new plan, dubbed ReconKering, will focus on “reigniting desirability, reinforcing operational excellence, and leading the next era of luxury”.
Kering reported a six per cent drop in first-quarter revenue to €3.5bn, with Gucci once again weighing on overall group performance.
It said the latest phase of its strategy builds on work already carried out since last year, including organisational changes, tighter financial discipline, clearer pricing and product direction, a more streamlined store estate and faster progress in key strategic areas.
Chief executive Luca de Meo said: “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. 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.”
As part of the strategy, Kering said it will look to strengthen Gucci’s desirability by sharpening its leather goods offer and creating a more cohesive range across ready-to-wear, footwear and jewellery, supported by higher quality standards.
The luxury group is hoping the latest reset will help stabilise performance at its biggest brand, which has faced mounting pressure amid weaker demand and a broader slowdown in the luxury sector.
Kering has also announced its intention to support future growth elsewhere in its portfolio, announcing the acquisition of a minority stake in Icicle owner ICCF.
The group said it would back Icicle’s next stage of development, including international expansion.
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