Gucci parent Kering picks Renault boss Luca de Meo as new CEO in bold move to revive luxe giant
Gucci owner Kering said it was hiring Renault boss Luca de Meo as its new CEO, confirming reports that sent its shares soaring and those of Renault to multi-year lows earlier on Monday.The Italian, who has spent his career in the auto industry, will be the first outsider to run the company controlled by the French billionaire Pinault family.He will take on the role on Sept.
15.The bold move highlights the scale of the challenge in reviving the debt-laden luxury conglomerate, investors and industry players said.Gucci drove years of spectacular growth at Kering but the company has struggled to reinvigorate its flagship label in the wake of the pandemic.It has also taken on more than 10 billion euros ($11.6 billion) in debt, exposing it to the risk of another credit rating downgrade.For Renault, the unexpected departure of its CEO is a major blow.
De Meo is credited with turning around the French carmaker and overhauling its two-decade strategic alliance with Nissan during his five years at the helm.Renault announced late on Sunday that de Meo would leave in mid-July to take on new challenges outside the auto sector.Reports of his switch to Kering sent the luxury group’s shares up by nearly 12% on Monday, recording their biggest one-day percentage gain since November 2008.Renault shares tumbled by about 8%, in what was their biggest daily decline since February 2022.De Meo’s move to Kering, which has lately failed to convince stock market investors with its plans to turn around Gucci, will mark a dramatic change at the group.Its shares have lost two-thirds of their value over the past five years.De Meo will replace Kering CEO Francois-Henri Pinault, who will remain as chairman.“Hiring someone from outside the luxury sector might be seen as risky, but his profile appears well-suited to lead Kering,” Kepler Cheuvreux analysts said.“His turnaround capabilities, product-focused leadership and extensive marketing experience would be part...