Kering set to scale back Gucci reliance amid vague growth strategy

2 months ago

Louise Moon

"Indeed. Yeah. This this so this was a report um saying yeah that that they would reduce their reliance on Gucci which is obviously Karing's biggest brand by kind of you know developing other brands and focusing on other ones like Balenciaga. Uh also saying they they would need to scale back their store network and have a rethink about their price positioning as well. And this is all to return to growth. Um shares fell on the back of that the most in nearly in nearly two weeks. Analysts are saying it's all quite vague. there's no definition of growth targets. There's no kind of hard facts. Um and and the report did note that the actual officially official strategy plan will be be presented next year."

The commentary on Kering highlights a strategic shift where the company is expected to reduce its heavy reliance on Gucci by developing other brands like Balenciaga and reconsidering its store network and pricing strategy. The report also notes that the detailed official strategy plan is slated for presentation next year, leaving current growth targets vague and contributing to a muted market reaction.