Kering Launches 'Centers of Excellence' for Brands
Kering, the parent company of Gucci and other luxury houses, has created two new group-level "centers of excellence." The move is designed to support brand growth and performance, signaling a push for more centralized operational and creative support across its portfolio.
The two new hubs are designated as "Industry" and "Client" centers. The Industry division will consolidate functions like purchasing, manufacturing, and supply chain, while the Client division will focus on product, pricing, marketing, distribution, and data. This move functionally centralizes key teams from Kering's various houses, including Gucci, Saint Laurent, and Balenciaga. This restructuring follows a period of significant financial pressure, particularly from its main brand, Gucci, which saw a 14% drop in sales in the third quarter of 2025 and has been underperforming. Overall, Kering's revenue fell by 10% in the same quarter, a slight improvement from a 15% drop in the previous quarter, but still lagging behind competitors. The group's net profit plummeted 46% in the first half of 2025. The move is a key initiative under the new leadership of CEO Luca de Meo, who took the operational helm in September 2025 as François-Henri Pinault transitioned to Chairman. De Meo, a former automotive executive, is tasked with orchestrating a turnaround for the luxury group. Two new executives will lead the centers, both reporting directly to CEO Luca de Meo. Stéphane Noël, with 30 years of experience in large-scale manufacturing operations, has been appointed Chief Industrial Officer, effective April 1, 2026. Carlo Mocci will become Chief Client Officer on May 4, 2026, bringing over two decades of experience in retail and B2C tech platforms. This centralization strategy aims to provide a unified framework and increased resources for the individual brands, enabling them to execute their strategies more efficiently. Kering's leadership stated the goal is to give its houses "the means to go faster and further" by clarifying the organization and connecting teams across the group. The changes come as Demna Gvasalia prepares for his highly anticipated debut collection for Gucci in March 2026, a pivotal moment for the brand's revitalization efforts. Gucci, which contributes nearly 40% of Kering's total sales, has struggled to regain its footing, with sales dropping significantly in recent years.
