AP Photo/Thibault Camus
- Gucci's parent company, Kering, appointed Renault's former CEO, Luca de Meo, as its chief executive.De Meo is set to start the new role in September.Kering has faced a difficult few quarters with revenue declines and a major stock price dip.
Gucci's parent company just got a new boss to steer it through a rough patch.
Kering, which also owns YSL, Bottega Veneta, and Balenciaga, announced in a news release on Monday that Luca de Meo, the former CEO of Renault, had been appointed CEO.
The luxury retail company said that de Meo will officially start the new role in September, subject to the approval of Kering's board of directors during its shareholder meeting in that month.
In the press release, de Meo said he would work to "continue to make Kering an essential player in the luxury industry." Kering did not respond to a request for comment from Business Insider.
De Meo will succeed Kering's departing CEO, François-Henri Pinault, who has led the luxury company for the past two decades. Pinault will stay on as the chairman of Kering's board of directors, per the release.
In 2005, Pinault took over the leadership of the company his father founded, Pinault-Printemps-Redoute. The company was renamed Kering in 2013.
The Pinault family also owns Artémis, a holding company with a 42% stake in Kering. Artémis's investments include the sporting goods company Puma and the auction house Christie's.
Kering's incoming leader is an automobile veteran. De Meo started his career at Renault in 1992 and then moved to Toyota Europe, with other stints at Fiat and Volkswagen. He was the CEO of Renault for the last five years. The automaker's stock is down more than 18% in the past year.
His appointment comes at a crucial point for Kering, which has seen several consecutive quarters of revenue declines. Its 2024 full-year revenue of 17.19 billion euros, or $19.88 billion, was down 12% compared to 2023.
The company's weak performance continued into 2025. First quarter sales decline compared to the year before.
Gucci, Kering's biggest brand by revenue share, had a particularly tough first quarter. Its sales dipped 25% compared to the year before, as consumer preferences moved away from Gucci's maximalist and eclectic styles toward subtle, quiet luxury.
Kering's problems are not isolated: The luxury market has seen a slowdown in the past few years, owing to changing consumer preferences, inflationary pressures, and political uncertainty worldwide. Big luxury giants like LVMH have seen sales dip and stock prices fall this year.
Kering's stock price rose more than 11% on Monday following de Meo's appointment announcement. The stock is down more than 36% in the past year.
Analysts from the Royal Bank of Canada wrote in a Monday note that de Meo's status as a Kering outsider would "add depth to the leadership team" and make him "more willing to make tougher decisions."
"His track record in turning around a French corporate will be particularly helpful at Kering, in our view, which has struggled to stabilise the business in recent years, with an increasing focus more recently on leadership and governance shortcomings," the note said.
The RBC analysts also highlighted de Meo's lack of industry expertise.
"We question whether he has the relevant luxury sector experience despite his strong résumé in terms of strategic viewpoint and turnaround credentials," they said.
