FRANCE: Kering Group, the French luxury conglomerate behind brands such as Gucci and Saint Laurent, has appointed Luca de Meo as its new chief executive, marking a significant shift in leadership. The move was confirmed on Sunday and signals the company’s intent to address recent strategic and financial challenges.
De Meo, 58, will step down from his current role as CEO of Renault, a position he has held since 2020. Renault announced that de Meo will remain at the carmaker until July 15 before transitioning to his new role at Kering. The appointment was first reported by Le Figaro.
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In early trading Monday, Renault shares dropped by 7 percent following news of his departure, while Kering shares rose by 5 percent, reflecting investor reaction to the unexpected leadership change.
François-Henri Pinault, who has led Kering as both chair and CEO for the past two decades, is expected to relinquish the chief executive role while retaining the chairmanship. However, this arrangement has not been officially confirmed by the company, which declined to comment on the leadership transition.
Kering has faced mounting pressure in recent years due to slowing growth, particularly at its flagship brand Gucci. Its market value has declined by approximately 70 percent over the past three years, currently standing at around €21 billion. A series of costly acquisitions and strategic decisions, including creative leadership changes, have raised concerns among investors.
De Meo’s experience leading Renault through a significant transformation is seen as a potential asset for Kering. During his tenure, he improved the automaker’s financial health and product portfolio, positioning it competitively despite its smaller scale and Europe-centric focus.
The change comes amid a broader reshuffling of leadership within the automotive industry as companies adapt to evolving market conditions and the transition to electric vehicles. Renault’s board has initiated the search for de Meo’s successor, expressing confidence in its current management team to continue the group’s strategic evolution.
The appointment marks a new phase for Kering as it seeks to redefine its direction in an increasingly competitive luxury market.
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