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Italy remains central to Kering’s plans, with the French luxury group having no intention of moving production out of the country, chief executive Luca de Meo said on Wednesday.
He also ruled out any interest in buying a minority stake in Armani, recalling that Kering was not mentioned in Giorgio Armani’s will, and adding that the group was focusing on other challenges.
Asked about Kering producing some sneakers for its Italian brand Gucci in China, de Meo said the decision was driven by specific technical requirements.
“We have absolutely no intention to relocate production or anything of that sort,” he told reporters on the sidelines of an event in Milan.
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“We have made it very clear that, given our ambitions, Italy’s central role in our manufacturing system remains one of the cornerstones of our strategy,” de Meo, an Italian national, said.
The CEO added that the company was working on a planned reorganisation of its supply chain, which he described as having too many layers and being overly fragmented, even though 25 percent of suppliers account for 98 percent of total sourcing.
De Meo declined to comment on rumours about the possible departures of Anthony Vaccarello and Pierpaolo Piccioli, the creative directors, respectively, of Kering brands Saint Laurent and Balenciaga.
By Elisa Anzolin and Giulio Piovaccari; Editors: Alvise Armellini and Kirsten Donovan
Learn more:
Kering Sales Rise 2%, Gucci Beats Estimates
Kering reported organic growth for the first time in three years. Gucci’s second-quarter sales remained in negative territory, but declined less than expected. New designs by Demna ‘are working’ at Gucci, CEO Luca de Meo said.
