The latest financial figures from luxury conglomerate Kering reveal a group in the midst of a delicate reconstruction. First-quarter revenues fell 6.2% to €3.57 billion, with its cornerstone brand, Gucci, declining 14.3%. CEO Luca de Meo framed the flat organic performance as a 'stabilization,' the first step in a recovery he's branded 'ReconKering.'
This moment of recalibration for a fashion giant invites a look back. Gucci, founded in 1921 as a luggage purveyor, didn't significantly enter the lingerie arena until the late 20th century, treating it as an accessory to the ready-to-wear silhouette. This approach contrasts with houses like Saint Laurent—another Kering brand—which, under Tom Ford in the 1990s, leveraged lingerie's provocative appeal to redefine its entire image. The current struggle at Gucci underscores a perennial challenge: integrating intimate apparel not as an afterthought, but as a core pillar of brand identity and desire.
While fashion and leather goods dipped, jewelry shone for Kering, with Boucheron leading growth. This echoes a historical pattern where economic uncertainty often drives investment into enduring, tangible luxuries over seasonal apparel. As Kering prepares to unveil its detailed strategy, the industry watches to see if its plan will stitch together a new foundation for growth, or if the seams of recovery need more time to hold.
Originally reported by WWD