LUCA DE MEO TAKES THE WHEEL AT KERING

Luca De Meo

Summary:

• Renault's CEO Luca de Meo will leave his position in mid-July, with speculation linking him to the top job at luxury group Kering
• François-Henri Pinault may transition from his dual CEO-Chairman role at Kering to focus solely on the Chairman position
• The potential leadership change occurs amid Kering's struggles, particularly declining performance at its primary revenue driver, Gucci

The automotive executive currently leading Renault has confirmed his departure from the French manufacturer, scheduled for mid-July 2025. Industry sources suggest Luca de Meo's next destination could be the luxury goods sector, specifically as the incoming chief executive of Kering.

The Paris-based conglomerate, which owns fashion houses including Gucci, Saint Laurent, and Balenciaga, finds itself at a crossroads. François-Henri Pinault, who has served in the combined role of Chairman and CEO, appears ready to concentrate exclusively on board leadership while handing operational control to new management.

Recent developments have added weight to the speculation. Kering postponed a previously scheduled analyst meeting set for this Monday without explanation. The timing coincides with persistent rumors about executive changes at the luxury group's headquarters.

The company's financial position presents clear challenges for any incoming leadership. Kering's stock value has dropped more than 60% over the past 24 months, while the group carries debt exceeding €10 billion. Gucci, historically the company's most profitable brand, has experienced notable sales declines that have affected overall group performance.

De Meo's background suggests he could address these operational difficulties. His five-year leadership of Renault included restructuring the carmaker's partnership with Nissan, reducing operational costs, and accelerating the company's electric vehicle strategy. These achievements established his reputation for corporate transformation.

The executive has not publicly addressed the speculation about his future role. Similarly, Kering has not issued statements confirming or denying the reports from French media outlets, including Le Figaro, which first suggested the potential appointment.

Should the transition occur, it would represent a significant shift from automotive manufacturing to luxury retail. The move also reflects broader industry patterns, where experienced executives increasingly cross traditional sector boundaries to tackle similar operational challenges.

The luxury goods market has faced headwinds recently, with changing consumer behavior and economic uncertainty affecting demand patterns. Kering's situation mirrors challenges faced by other major luxury conglomerates, though the company's debt levels and Gucci's performance decline present particularly acute concerns.

Any new CEO would likely focus on reversing Gucci's sales trajectory while managing the group's financial obligations. The brand's recovery remains central to Kering's overall strategy, given its historical contribution to group revenues and profits.