Kering's Turning Point: Being an AI Optimist in China

Kering released its first-half 2026 financial results on July 28, with revenue of 7.22 billion euros, a comparable 1% increase year-on-year. The second-quarter revenue was 3.652 billion euros, up 2%, marking the first positive quarterly growth in three years. Gucci's second-quarter revenue was 1.41 billion euros, with a decline narrowing from 8% to 2%, and operating margin up 1 percentage point to 17% for the first half. On April's Capital Day in Florence, new CEO Luca de Meo unveiled the 'ReconKering' strategy, targeting doubling the recurring operating margin, cutting inventory by 1 billion euros in 12 months, and closing about 250 stores over four years. China is positioned as a core innovation hub, and Kering launched a digital innovation center in Shanghai. De Meo, formerly of Volkswagen, sees AI as an enabler, citing a self-developed mobile AI tool that integrates data from multiple channels to generate reports. He believes China, with its abundant data, will lead AI innovation, but stresses that AI cannot replace human creativity.