In April 2026, Kering laid out the most consequential strategic plan in its recent history. Dubbed ‘ReconKering,’ the blueprint aims to more than double the group’s recurring operating margin — from 11.1 percent in 2025 to a target north of 20 percent — while accelerating revenue growth and restoring Gucci, its flagship brand and primary earnings driver, to a position of cultural and commercial leadership. The stakes could hardly be higher.
The ReconKering plan is built on three pillars: first, a rationalisation of Gucci’s retail network, including the closure of underperforming stores and a renewed focus on key luxury markets; second, a recalibration of the brand’s product strategy toward higher-margin categories, including leather goods and footwear; and third, a sustained investment in brand storytelling and cultural programming aimed at rebuilding Gucci’s relationship with the fashion-conscious consumer who may have drifted toward competitors like Loewe or Miu Miu.
Gucci has been the group’s problem child for several years now. After the departure of Alessandro Michele in 2022 and a series of creative and commercial missteps, the brand has struggled to recapture the momentum that made it one of fashion’s most talked-about names in the late 2010s. Under the new creative direction of Demna, who joined from Balenciaga, Gucci has begun to signal a shift toward a more stripped-back, less overtly maximalist aesthetic — but the market has yet to be convinced.
CEO Luca de Meo has expressed cautious optimism, describing the plan as ‘realistic but ambitious.’ The market’s initial reaction was measured — Kering’s share price saw a modest uptick following the announcement, but analysts remain divided on whether the targets are achievable in the current macroeconomic environment. The wider luxury sector is facing headwinds from Chinese consumer caution, ongoing trade tensions, and a general cooling of demand for entry-level luxury goods.
