Kering holds AGM at time of profound change

On Thursday, a few weeks after unveiling its strategic plan, French luxury group Kering held its AGM, at a time when the luxury goods market is slowing down and seeking to transform itself.

At Kering’s previous AGM, held last September, the group, which owns among others Gucci, Saint Laurent, Bottega Veneta, and Boucheron, appointed Luca de Meo as CEO, while François-Henri Pinault retained his role as board chairman. Kering’s financial position has become problematic in recent years, owing to significant debt and weak consumption expenditure. In 2025, the group’s revenue fell 13% to €14.7 billion, and net income decreased by a factor of more than 10.

In less than a year, de Meo, former boss of French automotive group Renault, has deployed a series of measures to get Kering back on track, notably aimed at reducing debt. The group has sold its beauty division to French cosmetics giant L’Oréal in a €4 billion deal.

At end 2025, Kering’s debt was €8 billion, €2.5 billion less than in 2024. Slashing debt “was essential, as it gives us room to manoeuvre and to act, enabling us to invest and prepare the future under ideal conditions” said de Meo on Thursday, speaking at the AGM. “We don’t want debt… to hamper our transformation,” he added.

At the AGM, de Meo reiterated some of the main elements of the strategic plan he presented in Florence in mid-April: reducing inventory, upgrading two-thirds of the group’s stores by 2030, closing 100 stores in 2026, and acting quickly to boost potential growth drivers like jewellery.

He paid special attention to Gucci, Kering’s flagship brand. The Italian label, which accounts for 40% of Kering’s business, has fallen out of favour in recent years, its revenue slumping from €10.5 billion in 2022 to €6 billion in 2025.

“We have set up the conditions for Gucci’s renaissance,” said de Meo on Thursday, mentioning the label’s new, more agile organisation and the renewed focus on Gucci’s foundational codes, leading to a 20% reduction in product SKUs.

China is another priority. Long the luxury goods sector’s main driver, in the last few years the country’s consumption has weakened. “China clearly remains a key market for our industry, but it is entering a demanding new phase, more selective and with a stronger local focus,” said de Meo.

Kering’s AGM approved the proposals brought before the assembly, including those relating to the CEO and board chairman’s remuneration packages.

By Marie-Morgane Le Moel