Kering targets profit margin boost amid Gucci slump
Kering, the owner of Gucci, has announced plans to double its recurring operating profit margin as part of a broader strategy to revive growth after a period of underperformance.
The company aims to significantly improve its margin from 11.1% recorded last year, targeting a return to stronger profitability over the medium term. The plan is expected to be detailed by CEO Luca de Meo, News.Az reports, citing Reuters.
Kering said it is working toward fully restoring its business fundamentals by the end of 2028, signaling a long-term turnaround effort.
The move comes as Gucci continues to face declining sales, weighing on the group’s overall performance. Once a major growth driver, the brand has struggled to maintain momentum in recent quarters.
At its peak in 2022, Kering achieved an operating margin of 27.5%, largely fueled by Gucci’s success under former creative leadership.
The new strategy is expected to focus on rebuilding brand desirability, improving operational efficiency, and aligning profitability more closely with industry peers in the competitive luxury sector.
The announcement highlights the challenges facing global luxury groups as shifting consumer demand and market dynamics pressure even the industry’s biggest names.
News.Az
By Aysel Mammadzada
