Has a rescue occurred?
Hot Goss on Kering: According to the French newspaper Le Figaro, the dynamo CEO of Renault, Luca de Meo, is up for the challenge of leading luxury conglomerate Kering. If he makes the cut, this would be a massive win for Kering, given de Meo's exceptional performance at Renault. Investors are all thrilled about the possibility!
De Meo is about to take off from Renault in mid-July, swapping the automobile industry for fresh pastures. Ever since joining Renault in 2020, de Meo has been transforming the company, boosting electrification efforts, reinforcing its partnership with Nissan, and enforcing a ruthless cost-cutting plan. The stock value of Renault has skyrocketed approximately 90 percent since his appointment.
Looks like François-Henri Pinault, Kering's CEO since 2005, will be handing over the big boss chair to de Meo, as hinted by the French business magazine Challenges. Pinault plans to hang on to the chairman gig of the supervisory board. Jouve, the top-notch executive search firm, has already got the job offer.
Gucci Facing Challenges
Kering's hoping for a lucky break. In Q1 2025, the company's revenue took a nose dive by 14 percent to 3.88 billion euros (reported by DER AKTIONÄR). In 2024, the company had a dismal year marked by a 62 percent drop in profits and a 12 percent dip in sales. Gucci, responsible for almost half of Kering's revenue, is in dire straits.
Previous attempts at shaking up the creative direction at Gucci haven't shown promising results yet. Whether de Meo can turn things around for Kering remains to be seen. But the rumor has already set stock market shares rising by over six percent, and DER AKTIONÄR will keep you posted; the stock isn't currently a hot recommendation. The publication's top picks in the luxury market are LVMH and Hermès.
- LVMH and Friends: The golden age of luxury is a memory
- Guns over Glamour: Rheinmetall dumps Kering
- Rival LVMH: Stunner at Kering's executive suite
Full Disclosure: The publisher Börsenmedien AG's boss, Mr. Bernd Förtsch, has invested in Kering's financial instruments.
Luxury Makeover:
With de Meo's appointment as the new CEO of Kering, expected to kick off on September 15, 2025 (assuming shareholder approval), several significant changes could unfold for this luxury conglomerate.
1. New Leadership and Vision
As a seasoned leader from the automotive industry, de Meo might bring fresh ideas to the table, allowing Kering to solve its existing hurdles by employing techniques that have proven successful elsewhere[1][2].
2. Brand Refresh
Given de Meo's understanding of brands and corporate culture, he might place emphasis on revitalizing Kering's luxury brands like Gucci, Balenciaga, and Saint Laurent, all of which have recently gotten new leaders. His strategies may involve rebranding, product innovation, or better storytelling to attract a broader audience[1].
3. Cultural and Operational Shifts
De Meo's focus on a "powerful and respectful corporate culture" could lead to transformations within Kering's internal operations and employee relations. This might mean adopting new management practices, cultivating stronger employee engagement, or promoting a culture that encourages creativity and innovation[1].
4. Innovation and Tech Integration
Stepping from a sector heavily impacted by technology, de Meo might drive Kering to adopt more digital and eco-friendly practices. This could encompass tech advancements like AI, AR, or sustainable solutions in brand experiences, product design, or supply chain management[1].
5. Strategic Revision
As part of Kering's governance transformation, de Meo's appointment reflects a broader strategic review led by François-Henri Pinault. This might involve rethinking Kering's growth strategies, entering new markets, or repositioning in the luxury market to remain competitive[1][2].
All in all, de Meo's appointment marks a brand-new chapter for Kering. His diverse expertise could help the conglomerate tackle existing challenges and propel it forward in the competitive luxury sector.
De Meo's diverse expertise in finance, investing, business, and technology, gained from his success at Renault, could potentially revolutionize Kering's operations. With a focus on innovation and tech integration, he might lead Kering towards adopting digital and eco-friendly practices, thereby positioning the company as a competitive player in the luxury sector.
The strategic revision, led by Francois-Henri Pinault and De Meo, might involve entering new markets, repositioning in the luxury market, or rethinking growth strategies, which could help Kering overcome its recent financial hurdles. De Meo's Fresh approach to brand refresh, corporate culture, and operational shifts could breathe new life into Kering's luxury brands like Gucci, Balenciaga, and Saint Laurent, potentially attracting a wider audience.
