“So we’re scaling back, repositioning, refocusing, and trying to recover from a situation that developed where we allowed McQueen to grow and open 135 stores. McQueen was treated in the same way as a major brand, and perhaps it wasn’t one; it should have remained much closer to its brand identity, doing things that were quite extraordinary. At one point, sneakers accounted for 80% of revenue. That doesn’t mean we don’t believe in McQueen. It means the structure was too heavy for its potential. The brand truly has potential, but it needs to be centered on the things the market expects from us,” he added.
Store closures
Kering reported 75 net store closures across its brands in 2025, primarily in Asia, and de Meo has plans for more. Kering will further reduce its retail footprint in 2026, with 100 net closures already scheduled and additional cuts still under discussion. Store count at its largest brand, Gucci, will go from approximately 600 stores (before the rationalization plan) to around 450 stores down the road, de Meo said.
The jewelry potential
Jewelry currently represents a small part of Kering’s business (Kering’s jewelry brands Boucheron, Pomellato, Qeelin, and DoDo generate an approximate total of €1 billion), but de Meo sees big potential — jewelry has proven resilient in the luxury downturn, and he seeks to reduce the group’s dependence on the fashion cycle.
“The acquisition of jewelry manufacturer Raselli Franco [in December 2025] reinforces our industrial capabilities in a category where we see tremendous potential. It gives us more control, more know-how, and more capacity to scale, and this is only the beginning,” he told analysts.
He added: “A very big hanging fruit is the business we could do with our fashion brands in that category, from custom jewelry to high jewelry. Think about Gucci, for example. Ten years ago, Gucci was doing three times the business that it’s doing right now in that category. So if you have an engine underneath that can help you develop the right product and right collection, this is a no-brainer, right?”
Longevity as the “next luxury”
In October, Kering announced that it was selling Kering Beauté to L’Oréal in a €4 billion deal. As part of this deal, there’s a 50-50 joint venture agreement on longevity, with the companies saying at the time that they would partner to “craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients”.
“I think it’s a segment that’s part of the ‘next luxury’ mix,” de Meo told journalists on Tuesday. “I believe it’s going to be one of the areas where people with strong purchasing power will choose to spend. And I think we really have the opportunity to create something that doesn’t exist yet. That excites me, because it’s a bet — but it’s also one of the spaces where we can generate surprise, growth, and profitability.”
How to win in China
Asked by reporters to share his view on the Chinese market, de Meo said: “I think China will always be a country where there will be a significant and growing luxury market […]. The question is, where will they spend their money? Will they spend it on local brands or on experiences? It’s also true that we no longer see that almost compulsive form of consumption that existed 10 years ago, but maybe that’s normal. The key, of course, is for Gucci to become a desirable brand in China again. I think this involves coming back with a product offering at the level expected of a luxury brand, because Chinese consumers have become very sophisticated.” De Meo also noted that they are developing a plan to further expand Saint Laurent in China.
When pressed to comment on how Kering intends to gain foot traffic in China in light of the intense competition there (referring to the monumental boat-shaped flagship opened by Louis Vuitton in Shanghai last year), de Meo replied: “We need to put in the work to produce the product and meet the quality and creativity standards that the Chinese expect. This is the first step, before even considering building a cathedral, a ship, or an airplane.”
The Valentino deal
In September 2025, Kering and Mayhoola jointly announced that they were postponing plans for Kering to fully acquire Valentino, delaying a significant buy for Kering. Under the new terms, Kering has the option to acquire 100% of Valentino’s share capital by no later than 2029. (Kering has been a minority investor in Valentino since 2023.)
