Kering Restructures Leadership, Shifts Focus Away From Gucci
Paris – Kering, the French luxury goods conglomerate, is undergoing a significant restructuring as CEO Luca de Meo seeks to diversify the company’s reliance on its flagship brand, Gucci. This move comes as Kering reported fourth-quarter sales falling less than initially feared, but still reflecting a continuing slide at Gucci, according to Reuters. The changes include increased responsibility for Kering’s Chief Operating Officer, Jean-Marc Duplaix, signaling a broader strategic shift within the organization.
De Meo, who took the helm of Kering in 2025 after a successful tenure at Renault, is implementing a plan to broaden the group’s portfolio and reduce its dependence on Gucci, which has historically accounted for a substantial portion of Kering’s revenue. This strategy acknowledges the evolving landscape of the luxury market and the demand for a more diversified approach to sustained growth. The restructuring aims to unlock potential within Kering’s other brands and explore new avenues for expansion.
De Meo’s Vision for a Diversified Kering
Luca de Meo’s appointment as CEO of Kering marked a turning point for the luxury group. Prior to Kering, de Meo demonstrated a track record of revitalizing automotive brands, successfully reviving Fiat 500, creating SEAT’s premium brand Cupra, and transforming Renault into a major player in the electric vehicle market. He brings this experience to Kering, applying a similar approach to brand development and strategic repositioning. According to reports, de Meo believes Kering’s future success hinges on scaling brands beyond Gucci and fostering innovation across the portfolio.
The move to lessen reliance on Gucci is not a reflection of the brand’s inherent value, but rather a proactive measure to mitigate risk and capitalize on emerging opportunities. The luxury market is subject to shifting consumer preferences and economic fluctuations, and a diversified portfolio provides greater resilience in the face of these challenges. Kering’s strategy involves investing in its other brands – including Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen – and exploring potential acquisitions to further expand its reach.
Jean-Marc Duplaix’s Expanded Role
The elevation of Jean-Marc Duplaix, Kering’s Chief Operating Officer, signifies a vote of confidence in his operational expertise and strategic vision. Whereas specific details of Duplaix’s expanded responsibilities remain somewhat limited, it is understood that he will play a crucial role in implementing de Meo’s restructuring plan and overseeing the day-to-day operations of the group. Duplaix’s experience within Kering will be invaluable in navigating the complexities of the transformation process.
Duplaix’s increased involvement suggests a focus on streamlining operations, improving efficiency, and fostering collaboration across Kering’s various brands. This may involve consolidating certain functions, optimizing supply chains, and enhancing the group’s digital capabilities. The goal is to create a more agile and responsive organization that can adapt quickly to changing market conditions.
Financial Performance and Market Context
Kering’s recent financial performance underscores the need for diversification. While the fourth-quarter sales decline was smaller than anticipated, the continued struggles at Gucci highlight the vulnerability of relying heavily on a single brand. The company’s shares surged on Tuesday, February 10, 2026, following the release of the earnings report and de Meo’s announcement of the restructuring plan, indicating investor confidence in the new strategy.
The broader luxury market is currently facing headwinds, including slowing economic growth in key regions and increased competition from emerging brands. Consumers are becoming more discerning and demanding, seeking unique experiences and personalized products. Kering’s restructuring is aimed at positioning the group to capitalize on these trends and maintain its leadership position in the luxury sector. The company is also investing heavily in sustainability and ethical sourcing, recognizing the growing importance of these factors to consumers.
De Meo’s Background and Leadership Style
Luca de Meo’s career trajectory demonstrates a consistent ability to turn around struggling brands and drive innovation. Born in Milan in 1967, de Meo studied business administration at Bocconi University, graduating in 1991. His early career included roles at Renault and Toyota Europe before joining the Fiat Group in 2002. He was appointed CEO of Fiat Automobiles in 2004, where he successfully relaunched the iconic Fiat 500. He later served as CEO of SEAT and Renault before taking the reins at Kering.
De Meo is known for his hands-on leadership style, his deep understanding of consumer behavior, and his commitment to innovation. He is also a strong advocate for sustainability and social responsibility. His appointment at Kering was widely seen as a bold move, signaling the company’s intention to embrace a new era of growth and innovation. He has received several honors for his work, including being named a Commander of the Order of Merit of the Italian Republic in 2015 and a Knight of the French Legion of Honour in 2022.
Looking Ahead: Kering’s Next Steps
The restructuring at Kering is an ongoing process, and the full impact of de Meo’s strategy will not be known for some time. However, the initial steps suggest a clear commitment to diversification, innovation, and operational efficiency. The company is expected to provide further details on its plans in the coming months, including specific targets for its other brands and potential acquisition targets.
Analysts will be closely watching Kering’s performance in the coming quarters to assess the effectiveness of the restructuring plan. Key metrics to watch include revenue growth at Kering’s other brands, improvements in operating margins, and the company’s ability to attract and retain top talent. The next major update on Kering’s performance is expected during the release of its first-quarter 2026 earnings in April.
The luxury goods market remains competitive, and Kering faces significant challenges in navigating the evolving landscape. However, with a clear vision, a strong leadership team, and a commitment to innovation, the company is well-positioned to achieve sustained growth and maintain its position as a global leader in the luxury sector.
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