Kering is holding its Capital Markets Day to present ReconKering, the next chapter of the Group’s transformation. The plan is intended to restore clarity, rebuild execution discipline and place Kering back on a long-term leadership trajectory, reaffirming its “True Luxury” foundations—creativity, craftsmanship, cultural relevance and product excellence—while preparing for the emergence of “Next Luxury,” shaped by new technologies, changing client expectations, new markets and new categories.
In a challenging market marked by deeper transformation and stronger competitive dynamics, Kering said it is taking decisive action to rebuild brand desirability, sharpen execution and deploy a more focused, more disciplined operating model. The Group noted that, in recent months, it has already reshaped its organizational architecture, reinforced financial discipline, sharpened product and pricing clarity, optimized its retail network, strengthened operational governance and accelerated key strategic areas.
“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,” said Luca de Meo, CEO of Kering.
Brand strategies: desirability first, designed for long-term growth
Kering said its Houses will enter the new phase with distinct identities and clear development paths, while scaling synergies across the Group.
- Gucci: reigniting desirability through refocusing the brand around its creative direction, disciplined codes and revitalized heritage with cultural impact; reshaping product architecture across categories including leather goods, ready-to-wear, shoes and jewelry; and strengthening regional strategies and distribution to accelerate execution.
- Saint Laurent: expanding the brand’s expression across an enlarged daywear wardrobe, reinforcing men’s offerings and elevating leather goods, while accelerating geographic reach with a focus on Asia.
- Bottega Veneta: scaling a distinctive luxury vision rooted in discretion and restraint, extending beyond leather goods into a complete women’s and men’s wardrobe, strengthening the desirability of its Intrecciato and deepening cultural visibility across key markets.
- Balenciaga: restoring balance by scaling the women’s offer and strengthening leather goods, building on the men’s business foundation, and expanding geographic presence beyond Asia.
- McQueen: refocusing on its British sartorial identity with women’s ready-to-wear, tailoring and eveningwear at the core, supported by coherent leather goods, shoes and accessories, and reshaping around a leaner, more disciplined model including a rightsized retail network.
- Brioni: reaffirming its position in Italian alta sartoria by strengthening ultra-luxury positioning through Maestria tailoring and a refined lifestyle wardrobe, preserving exclusivity through curated experiences and emphasizing customization and fit.
- Kering Jewelry: unifying Boucheron, Pomellato, DoDo and Qeelin under a single jewelry activity to strengthen creative identity and unlock scale; integrating Raselli Franco to build an industrial platform supporting craftsmanship, vertical integration and traceability.
- Kering Eyewear: advancing an integrated luxury eyewear platform built on 15 brands and industrial and design capabilities, with ambition to lead luxury Smart Eyewear; in partnership with Google, aiming to elevate connected eyewear into a luxury experience combining craftsmanship, design and functionality.
- Kering Next: expanding into new value pools with a disciplined approach, including strengthening Ginori 1735, unlocking beauty potential through a strategic partnership with L’Oréal, and seeding long-term opportunities in Longevity & Wellness; also scaling emerging brands and new luxury territories through House of Wonders.
A new integrated group platform designed for speed and efficiency
ReconKering establishes a Group platform intended to give Houses more power, speed and efficiency while preserving creative identity. The platform is structured around five hubs providing shared capabilities where scale creates clear value:
- Industry: consolidating core capabilities across purchasing, logistics, R&D, quality, manufacturing and supplier partnerships, reshaping the supplier ecosystem around strategic partners and unified planning, shared standards and training.
- Client: developing a client intelligence platform by consolidating proprietary and external data into a unified client base powered by AI to inform decisions across creation, sales & operations planning and downstream media, activation and clienteling.
- Technology: providing a modern, scalable tech foundation using cloud-native systems, agentic AI and next-generation digital twins to accelerate decision-making and support the operating model across product, client experience and operations.
- Sustainability: embedding environmental and social ambition in strategic and operational choices to reinforce responsible luxury, with long-term resilience, full traceability and responsible growth across the value chain.
- Support Functions: adding rigor, clarity and consistency to Group enablers so Houses can focus on creativity, product excellence and brand development.
Financial outlook and capital allocation
Kering said its financial ambition is anchored in disciplined execution and sustainable value creation, with the following pillars:
- Desirability: brand equity measured through a framework developed with an external institution and based on three pillars—visibility, appeal and image strength—allowing Houses to track momentum, benchmark against peers and activate targeted levers.
- Revenue: gradual market outperformance.
- Profitability: gradual improvement in recurring operating income supported by a stronger mix, focused execution and operational rigor across the Group, targeting mid-term to more than double full-year 2025 recurring operating margin percentage at Group level.
- Capital efficiency: structural improvement in ROCE to above 20% mid-term, supported by stronger fundamentals, better inventory discipline and more selective investment.
The Group also outlined its capital allocation priorities:
- Capex: reinvestment of 5% to 6% of revenue to support sustainable organic growth of the Houses.
- External growth: highly selective bolt-on acquisitions aimed mainly at strengthening craftsmanship, vertical integration and raw material security.
- Shareholder returns: a consistent dividend policy targeting a payout ratio around 50% of recurring net income, Group share.
Clear sequence: reset, rebuild, reclaim
ReconKering follows a sequence intended to rebuild strength, accelerate what matters most and advance with a challenger mindset.
RESET – by year-end 2026
Kering said it will complete a structural reset, restoring financial discipline, operational efficiency and strategic clarity across the Group, while Houses focus on reigniting desirability and strengthening creative and product relevance.
REBUILD – by year-end 2028
The Group expects to enter a phase of renewed, sustainable growth, accelerating momentum across its portfolio through clearer brand expressions, stronger client engagement and improved execution, translating into structural improvements in profitability and returns.
RECLAIM – by year-end 2030
Kering said it aims to reclaim leadership as the reference player in Next Luxury, defined by desirability supported by efficiency and built for the decade ahead.
Ambition and timeline
- Sustainable growth: gradual market outperformance (mid-term).
- Recurring operating margin: more than double FY 2025 recurring operating margin percentage (mid-term).
- ROCE: greater than 20% (mid-term).
- Capital allocation: capex at 5% to 6% of revenue (ongoing).
- Shareholder returns: around 50% payout ratio of recurring net income, Group share; dividend growth aligned with performance (ongoing).
About Kering
Kering is a global, family-led luxury group with Houses across couture and ready-to-wear, leather goods, jewelry, eyewear and beauty, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735 and Kering Eyewear. The Group reported that in 2025 it employed 44,000 people and generated revenue of €14.7 billion.
