The spotlight on Kering’s turnaround strategy has centred almost entirely on Gucci — and for understandable reasons. The Italian house generates roughly half of the group’s revenue and has been the most visible symptom of Kering’s challenges, with sales declining through 2025 before the arrival of designer Demna offered a narrative of creative renewal. But the group’s investor day, held in Florence in April, revealed a more complex picture: Gucci is not Kering’s only problem, and a successful Gucci recovery alone will not be enough to return the conglomerate to its former trajectory.
Balenciaga, meanwhile, occupies an unusual position within the group. Under Demna — before his move to Gucci — the house had reestablished itself as fashion’s most provocative cultural force, but its commercial engine has not always matched its editorial firepower. With Demna now at Gucci and Balenciaga searching for its next creative chapter, the brand faces an identity question that no amount of financial engineering can solve.
Kering’s ‘ReconKering’ plan, unveiled by CEO Luca de Meo, aims to more than double the group’s recurring operating margin from 2025 levels. The strategy is built on cost discipline, retail optimisation, and a more selective approach to brand investment. But the reality is that Kering’s portfolio is at a point of rare fragility, with each of its major houses navigating a transition of some kind. The group’s recovery depends not on a single brand’s resurgence but on the simultaneous stabilisation of an entire ecosystem — a task that will test the limits of even the most ambitious turnaround plan.
Saint Laurent, long considered Kering’s most consistent performer, has shown signs of deceleration. The house, which benefited from Anthony Vaccarello’s sharp-edged creative direction and a focused strategy around leather goods and eveningwear, is navigating a luxury market where its core customer — the aspirational spender — is precisely the demographic that has pulled back most aggressively. Saint Laurent’s wholesale channel, once a source of stability, has become more volatile as the brand tightens distribution to protect its positioning.
Bottega Veneta faces a different challenge: sustaining the momentum of a remarkable turnaround without losing its identity. Matthieu Blazy’s departure to Chanel created a creative vacuum that new appointee Louise Trotter must fill, and the question of whether Bottega’s quiet-luxury proposition can continue to grow without Blazy’s singular vision is one of the most closely watched in the industry. The house’s leather goods remain strong, but its ready-to-wear — which Blazy had elevated to critical acclaim — will be tested under new leadership.
