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renault CEO Luca De Meo Expected to Take the Helm at Gucci Owner Kering
The Luxury world is bracing for a significant shift as Luca De Meo, the current CEO of automaker Renault, is widely expected to be named the new head of Kering, the luxury group that owns Gucci. This move positions one of Italy’s highly regarded business leaders to steer the future of the global fashion giant.
Kering’s Shares Surge Amid Leadership Change Rumors
Shares of Kering, a powerhouse encompassing global fashion icon Gucci, experienced a boost, climbing nearly 10% on the Paris exchange during early trading.News anticipates the formal announcement of Renault’s CEO as the next chief executive.
De Meo’s expected appointment follows a report that anticipates his future by *Le figaro*. The company plans to divide the CEO and chairman roles which Francois-Henri Pinault currently holds. Pinault is expected to remain as chairman of the French luxury group controlled by his family.
Renault shares, however, have taken a dip, due to uncertainty regarding De Meo’s successor. De Meo is credited with revitalizing the French automotive retailer and nearly doubling its share value.
Renault confirmed De Meo’s resignation in a media announcement, stating that he would depart from the automaker on July 15.
Why Kering Is Eyeing a turnaround with a New CEO
Kering’s board has been observing De Meo’s performance and actions in another challenging business sector. Gucci, Kering’s flagship brand, has been struggling to maintain its position in the evolving luxury market. new, informal brands are gaining traction, contributing to a global downturn.
In recent years, Kering has been active in acquisitions, including fragrance maker Creed and a stake in Italian fashion label Valentino.They’ve invested in real estate but are reportedly considering divesting assets to balance their financial portfolio.
Gucci Attempts a Rebound
The change at the top arrives after Kering’s stock plummeted nearly 80% from its post-pandemic high in August 2021. Despite a recent increase, the share price remains 20% lower than at the beginning of the year.
The group has been focusing on revitalizing Gucci, which accounts for nearly two-thirds of kering’s profit, by introducing new designers.Still,thes efforts have not yet delivered significant results. new CEOs have also been appointed for brands including Gucci and Yves Saint laurent over the past year.
Luxury labels have invested heavily in recruiting top talent to reverse their performance. De Meo, aged 58, brings five years of experience at Renault along with previous roles at Fiat and Volkswagen. Kering has been impressed by his partnerships with tech giants like Qualcomm Inc. and fashion brands such as Agnès B.
Francois Pinault’s Legacy and Future Role
Francois Pinault has guided Kering for two decades. Under his leadership, the group, founded by his father Francois, transitioned from PPR to Kering and saw significant growth, especially during Alessandro Michele’s tenure as Gucci designer starting in 2015.
Michele stepped down in 2022 as his designs lost favor with evolving luxury consumers. Simultaneously occurring, Pinault has faced criticism for a perceived hands-off management style as many luxury houses navigate changing consumer behaviors.
Additionally, a Balenciaga ad campaign in late 2022 faced widespread criticism for sexualizing minors. the campaign was overseen by designer Demna, who was later promoted to become Gucci’s artistic director earlier this year.
This promotion was met with investor disapproval.Though, the announcement of De Meo’s expected leadership could place Gucci and other Kering brands under a leader with a triumphant track record at Renault.
The Future of Luxury Brands
The luxury market is in constant flux. Shifts in consumer behavior, preferences for informal brands, and global economic conditions all contribute to the challenges faced by established houses like gucci.
Leadership changes and strategic realignments are crucial for these brands to remain competitive and resonate with new generations of consumers.
| Name | Current Role | Expected Role |
|---|---|---|
| Luca De Meo | Renault CEO | Kering CEO |
| Francois-Henri Pinault | Kering CEO & Chairman | Kering Chairman |
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