From Yahoo Finance: 2025-06-16 11:53:00

Luca de Meo, new CEO of Kering, to bring fresh vision to troubled luxury giant facing challenges. Current CEO Francois-Henri Pinault to remain chairman, praises de Meo’s global perspective. Analysts positive on management succession, noting Kering’s need for change due to deteriorating performance. De Meo credited for Renault’s turnaround.

De Meo, with automotive background, needs strong support in luxury fashion industry. Kering plans to continue action plans for 2025, including brand repositioning and debt management. De Meo approaches new role with enthusiasm, aims to make Kering a key player in luxury industry. Shares in Kering surged 11.8% on news.

Analysts highlight need for turnaround at Gucci and Saint Laurent. Kering’s first-quarter revenues down 14%, Gucci down 25%, Saint Laurent down 9%. De Meo’s expertise in brand management and marketing may benefit Kering. Analysts say he could enact significant change, focusing on leadership team at Gucci and restructuring brand-level commitments.

De Meo leaving Renault to join Kering, shares in Renault fell 8.7%. De Meo has 30 years of industry experience. Kering has history of recruiting industry outsiders. Industry experts optimistic about de Meo’s potential to revitalize Kering’s luxury brands. Robert Polet, former president and CEO of Gucci Group from 2004 to 2011, is known for his tenure at the luxury conglomerate. Pinault, who succeeded Serge Weinberg at PPR in 2005, transformed the group into Kering. Under his leadership, Kering shifted focus to pure luxury, selling off retail and sport-lifestyle segments.

Pinault’s eventful tenure included acquiring Creed, investing in Valentino, and forming alliances. Recently, he expressed disappointment in Kering’s financial performance. The company is banking on Balenciaga designer Demna to revitalize Gucci and is looking forward to the debut of new designers at Balenciaga and Bottega Veneta.

In a bid to restore Kering’s financial performance, Pinault is focused on long-term sustainability for the luxury group. The company hopes that Demna’s creative direction at Gucci and the debut of new designers will bring about positive results. Kering aims for a less volatile and more solid stock price in the future.

Read more: New Kering CEO Luca de Meo Seen Bringing a ‘Fresh Vision’ to Luxury Group