Kering CEO Luca de Meo Talks Iran War, ICCF

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Look, Abela, thank you so much for being with Bloomberg a tivty today right here in Florence, where Gucci was born in nineteen twenty one, more than a century ago. Do you think that today's a capital markets day and strategic plan is kind of a rebirth for Gucci?

I should be.

I think the idea of coming back to the source of the brand is probably the most important in our group.

And also to show that this is the.

Beating heart of caring right as well, because we have plans producing all the brands, et cetera.

So the heart of the system is here. I think it's very symbolic.

Over the past few years, however, we've seen this loss, Guccie losing a bit of desirability.

How do you plan to really revive this? This morning?

And Lissa a little bit saying your plan is a little bit cautious.

What's your reaction to.

This think I think you need.

It's not a calcious plans, it's a it's a common sense thing because I think at a certain point in time that we probably made a few let's.

Say, mistakes on the brand, so we know what we have to do.

We know what Gucci is about, we know what the customer wants I expect from Gucci, and we're going to be very very quick and decisive on providing people what they want, maybe also things that they have, you know, they don't know that they want, but Gucci will kind of improve it to the mark.

So well, let's see what they don't know what they want. Obviously, you on X who c you a X car ceo. You launched a very shiny new models, such as a very successful five.

What is the new R five iconic product of.

Which I don't know? It must probably be.

I mean, I think that what make defines in business terms, the success of luxury brand normally is into the letter goods space. So probably, you know, I think it's a long time that Gouchi is not, for example, launching an iconic bag or something that stays into the thing. So probably that would be where you know, I would give the challenge to the team to come up with something that you know, blows the market away and hopefully we can make it.

But yeah, I think it's.

The whole idea of developing Gucci on many categories.

We actually stated that we want to.

Go back to jewelry and watches, some of them with very iconic products, So I think, you know, there's a lot of potentially it's a great brand. Is the second most known brand on the planet in the luxury space. One of the most famous Italian brands is still you say desirability when dumb, and still in the top five in the market.

So it's a big, good platform.

Of course, we cannot ignore that the short term situation is difficult. We've seen this week the Middle East fears be causing luxuries talks to plunge all across the board.

Do you think this short term uncertainty geopolitical.

Fears is making your plan much more difficult than your predicted.

I think it's already many years where you know, even the industry is is you know, impacted by strong volatilty also geopolitically everywhere. So this volatility is factor into the plan because we're trying to build a company that is more agile, that's is lighter ex exactly to.

Master this volatility.

We believe in the region in the long term potenttion of Middle East. I think long term it will continue to grow, so we have no hesitation to you know, continue to invest as a very important customer, et cetera. So, you know, I think unfortunately this I hope that the thing will you know, come down very quickly, hopefully, but we believe in the long term that the Middle East would be a key region.

For actually even if the aspirational consumer might not be here right now.

In the Middle East, I think you have a lot of people that are in the core category and in the vac category.

This is the heart of the business there.

Obviously Gucci is sixty percent of profit, but you have other brands. If Bouvina, Balanceaga, obviously Boutigavinita, you're looking for a new CEO. You come from the k industry, You've brought a lot of people in. Would you perhaps be looking at an external candidate for Boutiguavinita, someone perhaps from the industry.

No, I don't think, you know, I don't go you know, I didn't go to extreme. I think we are looking at people in adjacent the industry, of people that are.

You know, proved professional in the in the luxury world.

I think Botega is a very attractive brand, so we don't have really probably issue of you know, attracting people. But I also want to take, let's say, the time to make the right decision, because leadership at Bootega in.

Our system is very relevant role.

So but it's not going to last very long before we you know, kind of communicate about this movement. In the meantime, I don't know if it's reassuring for you, but I'm taking care of the Bodegatta team and you know, I love that brand and so I'm trying to support them in the face. But it's a good team that is working together pretty swiftly.

Obviously at Gucci we also have them who came as a creative director, did the first fashion show in Milan in February. George Channel also have new creative directors, which is making.

The market very competitive. How long are you giving them a Gucci?

I think, you know, I think one of the issues why Gucci has been you know, more recently in traubles was the lack of stability you know, in the management team on the creative side, with you know, many changes, and I think it's very important for me that we, you know, I can assure stability for the team both

Things with Gooch.

This morning you also announced this new deal with the I C c F, which is very presently in China.

There's this debate at this moment that Chinese consumer becoming more.

Nationalistic buying Chinese products at least made in China.

Is that the rational behind.

This, the rational is to open a door, you know, in the Chinese market, in the in the in the system itself, having you know, partners and friends that can let us understand and what's going on there, even you know, behind the curtain and you know the old supply chain, the old industrial thing, etc. So I think I'm very well placed as an ex you know, automotive executive to understand how important is to understand what's going on in China, not only on the business side, but also on the

Of each one of the market.

I think China give us a lot in terms of market and so we also need to give back.

And that's that's rational.

Band very quickly because we were running out of time. Obviously, you sold the king Bouty to Loyal four billion. Urous is it just for catching that or are you still sticking to the kind of increasing your stake in Valentino in twenty eight twenty nine.

I think to two things are independent. I mean, we have realities that we are you know, we have a deal for a put called option in twenty and twenty nine which we postpone. Let's say a couple of thisis because it was actually practical for both. We had to you know, we didn't have the probably the resources to handle you know, the lending of a new brand if it would come in twenty six twenty seven.

They needed time to develop the thing. So it was good for both.

And I think with this postponed and I can concentrate on, you know, fixing all the things they have to fix, and probably that Arizona will be stronger even from a management bandwidth point of view, to potentially accommodate. So this is the deal on Loreal. I think it was partly motivated by the fact that we have to deleverage caring. But honestly, if I think about it, this kind of construction will help us to boost the development of our brands because Loreal is a.

It is a fantastic machine.

And so I'm sure that you know, what they've done in if Slauran can be repeated on other brands. And finally we will get you know, a certain amount of royalties which will help. But also I think we can benefit of the marketing power machine of let's say, of Loreal that will enable us to give, you know, to create awareness reach for all our brands, even the one that that are a little bit more niche like Balenciaga or Botega, anything in cosmetics.

So so I think it's a good deal.

Very Finally, how is your relationship from some ip know now that the two roles are split, What advice is he giving you?

No, I think a lot of advice because he has been twenty years at the Helm doing my job, so he has seen a lot of situations. So it helped me also to decode based on the information gives me, let's say, where this thing happened, what is the origin of this or that. It's very very helpful. So we have a very smooth relation, very fluid. And you know, I think I speak with him like at least a couple of.

Times a week.

And you know, now we're flying, you know, together to a place which I don't want to say, but but you know, yeah, it's it's a very very good two workin. You know, he's doing the chairman. It's right to do that, and you know I'm the oppressional guy and I try to run the machine.

Thank you so much for Kemi, Thank you so much for welcoming us here in Fluence.

Thank you, thank you