Kering announced Renault CEO Luca de Meo as its new executive leader through an unexpected selection that aims to restore success to Gucci after multiple years of underperformance.
The September arrival of De Meo marks his first time leading the Pinault family-controlled company since he comes from an automotive background. The appointment of De Meo resulted in a 12% increase in Kering stock prices which became the largest daily gain since 2008 while Renault stock prices dropped by 8%.
The company faces more than €10 billion ($11.6 billion) in debt while struggling to revive Gucci as Kering continues to experience underperformance. The market reacted positively to this decision because investors believe Chairman François-Henri Pinault will now take decisive actions after Kering’s market value declined by 75% since 2021.
The automotive industry veteran De Meo received recognition for his work at Renault where he both restored the company’s success and restructured its partnership with Nissan. The move to bring De Meo from the automotive sector mirrors previous appointments of executives like Robert Polet at Gucci and Leena Nair at Chanel.
The new challenge for de Meo involves both recovering luxury market position and leading Kering through its financial crisis. He will leave Renault in mid-July.
