ReconKering: How Kering is pulling out all the stops to save Gucci

An ambitious recovery plan aims to double Kering’s profit margin. The French luxury group is focusing on a combination of cost-cutting, debt reduction, and a thorough overhaul of its product portfolio, CEO Luca de Meo announced at the Capital Markets Day.

Profit margin to more than double

Kering is aiming for a structural improvement in its operating profit margin, which is expected to be more than double the 2025 level by mid-2028. In addition, the group is aiming for a return on capital employed (ROCE) of more than 20%. De Meo emphasized that the recovery plan, dubbed ReconKering, revolves around restoring the brands’ appeal and sharpening operational efficiency.