Luca De Meo resigns from Renault to lead Gucci owner Kering
- Luca De Meo will leave his position as CEO of Renault to take over Kering, the owner of Gucci.
- Kering has faced a significant drop in stock value while attempting to reposition itself in a challenging luxury market.
- The change in leadership may offer a new direction for the company as it seeks to rejuvenate its flagship brand, Gucci.
In France, Luca De Meo's upcoming appointment as CEO of Kering is anticipated following his successful tenure at Renault, where he has played a crucial role in revitalizing the company. His resignation from Renault, effective July 15, was confirmed by the automaker in a media statement. De Meo's leadership at Renault saw remarkable growth, almost doubling the company's share value through innovative partnerships and an effective turnaround strategy. Kering, which owns the luxury fashion brand Gucci, has faced significant challenges, including a nearly 80% drop in share value since August 2021. Observers expect that De Meo's experience in automaking and his proven track record in reviving a struggling brand could bode well for a Kering leadership that has sought to redefine its place in the luxury market amid shifting consumer preferences towards more casual brands. This critical transition in leadership reflects Kering's attempts to reestablish its dominance in the high-end fashion industry. Under the proposed restructuring at Kering, the roles of CEO and Chairman, currently held by Francois-Henri Pinault, will be split. This shift in corporate governance is seen as a pivotal moment for the company, which has made considerable investments in various luxury brands and properties while grappling with a broader industry downturn. Despite its investments, Kering has struggled to rejuvenate Gucci's brand image and restore its former profitability, as efforts to introduce new designers have not yielded the desired results. The management change aligns with Kering’s broader efforts to innovate within its portfolio and leverage De Meo’s experience in both automotive and fashion sectors. This strategic hire aims to instigate a turnaround within Kering, particularly for Gucci, which remains its most profitable brand. As the luxury market evolves amid changing consumer behavior, De Meo’s unique background may offer Kering the fresh perspective needed to navigate these complex challenges effectively.