Latest news with #LucaDeMeo
Bloomberg
5 hours ago
- Automotive
- Bloomberg
France's Billionaire Kings of Bling Are Under Pressure
Bonjour et Bienvenue to the Paris Edition. I'm Bloomberg Opinion columnist Lionel Laurent. If you haven't yet, subscribe now to the Paris Edition newsletter. At the peak of its powers a few years ago, Francois-Henri Pinault's luxury conglomerate Kering – owner of Gucci, Yves Saint Laurent and Balenciaga — was valued at over $100 billion on the stock market. Since then, its shares have tumbled more than 75%, Gucci is in trouble and after two decades at the helm Pinault is handing the operational reins to veteran auto executive Luca de Meo.
Forbes
2 days ago
- Automotive
- Forbes
What A Leadership Change At Gucci Owner Kering Signals For Luxury
Luxury has always thrived on surprise — from unexpected runway silhouettes to bold marketing moves. But the appointment of Luca de Meo, CEO of Renault, to lead Kering marks a surprise of a very different kind: not aesthetic, but strategic. It's a rare cross-industry leap, and a telling sign that the luxury industry is beginning to question its most fundamental assumptions. Kering, owner of brands such as Gucci, Saint Laurent and Balenciaga, is under pressure. The group's EBIT is expected to fall by two-thirds between 2022 and 2025, and its major brands — except Bottega Veneta — are struggling with stagnating or sharply declining sales. Gucci, the group's crown jewel, saw organic sales drop 25% in the first quarter of 2025, despite a much-publicized creative reset. Balenciaga and Alexander McQueen are also experiencing fatigue, while Saint Laurent — once a reliable performer — has lost momentum. Kering is not the only luxury player facing turbulence, but its situation is especially delicate. Unlike LVMH, which has multiple engines of growth, or Hermès, which benefits from near-mythical brand scarcity, Kering's portfolio is more exposed. In that light, the hiring of Luca de Meo, an outsider from the automotive world, may seem like a gamble. But it might also be a necessity. I first met de Meo when he became CEO of SEAT in 2015, a time when the Spanish automaker was struggling with its identity and purpose within the Volkswagen Group. What I saw was a leader not only fluent in branding and market positioning, but also capable of energizing teams with his contagious passion. He led the creation of CUPRA — an internal project initially met with skepticism — that has since become one of the most successful growth stories in the VW Group. Launched in 2018, by 2024 CUPRA was selling 248,100 vehicles, accounting for 44.5% of SEAT's total sales. At Renault he has worked to revive emotional connection through iconic brands like the Renault 5. At the same time, he has taken bold structural decisions such as spinning out the electric and combustion engine businesses into separate operations, including the Ampere electric vehicle unit and the ICE-focused Horse joint venture with Geely. These were not cosmetic changes, but foundational moves aimed at making Renault not just profitable but future-ready. Equally important is what de Meo has done on sustainability. Under his leadership, Renault committed to producing the most sustainable car in Europe — the reborn electric Renault 5, built using recycled materials and powered by low-carbon batteries sourced from Europe. The company also launched a circular economy initiative around its Flins Refactory facility, turning a former assembly plant into a hub for vehicle reuse, parts recycling, and repair — a direct challenge to the linear production model. These are deep structural shifts, not surface-level branding. But perhaps the most telling mark of his leadership is how others talk about him. Over the years, I've met many of his top executives at SEAT, and what struck me was not just their alignment with his vision, but their genuine enthusiasm to be part of that team. When he left, they were truly sad to see him go. That kind of loyalty and morale is hard to manufacture, and speaks to a culture of purpose and momentum, something many creative-led luxury houses are struggling to sustain. Why bring someone like this into luxury? Because there's a growing sense that the traditional playbook — build global megabrands, expand retail, drive heat through designers and capture margins through accessories — is showing its limits. The world has changed. Consumers are more fragmented, cycles move faster and environmental pressure is building. A brand like Gucci can't just rediscover relevance; it must redefine it. By appointing de Meo, Kering may be signaling its intent to rethink not just leadership, but legacy. An executive from outside the 'maison' mindset may be more willing to ask difficult questions: Can sustainability be moved from storytelling to structural innovation? Should luxury rethink its production model? Should circularity be integrated into design from the start? Can new ecosystems — across resale, repair, or digital ownership — become part of luxury's identity rather than a threat to it? Of course, this transition will come with tension. Kering has cultivated excellent internal talent. Many expected one of them to take the top job. Skipping over them might create frustration or signal a lack of confidence in the group's own leadership pipeline. None of this is to suggest that an outsider CEO guarantees success — especially in a culture-heavy, intuition-driven industry like luxury. Whether bringing in an external CEO leads to better performance is a heavily debated question in management studies. Research on the subject offers varied conclusions: from how hiring external CEOs amplifies both the costs and the benefits of strategic change, to how firms with outside CEOs achieve greater productivity gains than those led by insiders. It all suggests that while bringing in an external CEO is inherently risky, it does seem appropriate when strategic and organizational disruption is needed. De Meo's arrival may prove to be Kering's own 'CUPRA moment'— a shock that aims not just to stabilize earnings, but to rediscover the company's purpose and redefine its identity. By Fabrizio Ferraro, professor in the Strategic Management Department of IESE Business School and Academic Director of IESE's Institute for Sustainability Leadership.
Arabian Business
2 days ago
- Automotive
- Arabian Business
Renault boss Luca de Meo chosen by Kering to turn around their fortunes
Luca de Meo turned around the fortunes of carmaker Renault. He will now have to bring that acumen to selling handbags and high fashion. The 58-year-old Italian has been handpicked by François-Henri Pinault to revitalise brands like Gucci, Saint Laurent, Bottega Veneta and Balenciaga, and restore his company Kering to its former glory. Pinault took over as Kering's (then called Pinault-Printemps-Redoute) Chairman and CEO in 2005 and turned the company into a focused luxury operation from a retail conglomerate. However, from its position as the most eminent fashion brand in the world, Kering has slipped behind competitors like LVMH and Hermès. Gucci, Kering's flagship brand, has experienced six consecutive quarters of decline. Pinault had been advocating splitting his role for some time now, and that has finally happened. The Frenchman will continue to chairman of the board. De Meo's appointment will have to be approved by during the Shareholder Meeting on September 9. He is expected to take office on September 15. Share prices of Renault have dropped nearly 9 per cent from EUR42.99 (US$49.46) to EUR38.99 since the news of de Meo leaving the company broke on Monday. On the other hand, Kering stock prices have risen from EUR172.14 to EUR185, a jump of nearly 7.5 per cent. According to the Wall Street Journal, Pinault and his family hold a 42 per cent shareholding and about 60 per cent of the company's voting rights. The holding accounts for the bulk of the family's fortune, estimated at just under US$20 billion. In a statement, Pinault said: 'After twenty years of transforming Kering into a major global luxury player, the group is ready for a new stage in its development. 'From 2023, I launched a reflection on the evolution of the group's governance. It was in this context that I met Luca de Meo. His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision and steer this chapter in our group's history. 'It is with complete confidence that I am handing over the leadership of Kering and our teams to Luca.' Renault's remarkable financial recovery The Milan-born de Meo has 30 years of experience in the automotive industry, beginning his career at Renault in 1992, followed by a stint at Toyota Europe and a long tenure at the Fiat Group. In 2009, he joined the Volkswagen Group as Group and Volkswagen Brand Marketing Director. Since July 2020, de Meo has been the CEO of the Renault Group. In 2020, Renault was heavily impacted by the COVID-19 pandemic, as almost every other business was, and reported losses of EUR8,046 million (US$9,259 million). From there, de Meo managed to engineer a turnaround and in February 2025, he announced the best profits in the group's history. The group posted a record operating profit in absolute value at €4,263 million (US$4,903.5 million), which represented 7.6 per cent of revenue. On his move to Kering, de Meo said: 'I would like to thank François-Henri Pinault and the Board of Directors for choosing me to lead Kering into this new phase of development. 'I am approaching this new professional challenge with enthusiasm, eagerness, and confidence, inspired by the strength of the group's brands and the expertise of its people. I am convinced that together we will continue to make Kering an essential player in the luxury industry.'
Yahoo
3 days ago
- Business
- Yahoo
Kering bets on Renault boss Luca de Meo to revive Gucci
Francois-Henri Pinault, the billionaire heir who has headed up the French fashion house Kering Group for the past 20 years, has picked the CEO of automaker Renault to be his successor. The stock market's reaction? That's gucci. Pentagon Pizza Index: The theory that surging pizza orders signal global crises 5 signals that make you instantly more trustworthy at work What's behind the rise in interim CEOs Shares of Kering jumped Monday after reports trickled out beginning Sunday that Kering planned to tap Luca de Meo as its new CEO. The stock closed 13.5% higher. The Paris-based company confirmed the news in a statement on Monday, indicating that de Meo will take the helm of the struggling fashion house as it 'enters a new phase of development.' Pinault will stay on as chairman of the board of directors after de Meo takes the helm in September. Pinault said in the statement that he first met de Meo a couple years ago when he 'launched a reflection on the evolution' of the company's governance. 'His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision and steer this chapter in our Group's history.' The big jump in Kering shares suggests investors are at least hopeful about Kering's future, and Bernstein analysts noted that brand management and marketing are de Meo's forte, as reported by CNBC. Kering shares have fallen more than 72% in the past four years as the company has struggled to convince customers—and investors—of its appeal. Much of Kering's problem rests with Gucci, the group's biggest brand by far, accounting for 44% of revenue in 2024. Gucci has been dragging down the rest of the company: In the first quarter, Gucci's sales fell 25%, while Kering's fell 14%. Gucci has fallen out of fashion among consumers, and particularly in China and the broader Asia-Pacific region. The brand closed two stores in Shanghai earlier this year, while other brands have gained traction among consumers there—and elsewhere. Attempts to breathe some new life into the brand—such as the March announcement of Demna as Gucci's new creative director following a decade-long stint at Balenciaga—didn't assuage investors. And consumers looking for a handbag that's nostalgic to Gucci's golden years might find a more attractive option in an independent collection of handbags by Alexandra Gucci Zarini, an heir to the Gucci family, While de Meo had a successful tenure at Renault—during which time the stock jumped nearly 90%—he faces a difficult road in his new role. 'De Meo has a titanic challenge ahead of him,' Luca Solca, analyst at Bernstein, told The Wall Street Journal. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
Kering names new CEO
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Kering has appointed Luca de Meo as CEO, according to a Monday press release. He was previously CEO of France-based automotive company Renault, which he announced his departure from on June 15. De Meo succeeds Kering chairman François-Henri Pinault, who formerly held a dual role of chairman of the board of directors and CEO. This decision to split up the roles of CEO and chairman was initiated by Pinault, per the release. The leadership change comes as losses continue to mount for Kering. In April, the Gucci owner posted a Q1 revenue decline of 14% to 3.9 billion euros, or about $4.4 billion at the time. Revenue fell 12% in fiscal 2024. The executive changes are expected to take effect subject to approval from the board of directors, who will vote following a Kering shareholder meeting on Sept. 9. If his appointment is approved, de Meo will take office on Sept. 15. 'After twenty years of transforming Kering into a major global luxury player, the Group is ready for a new stage in its development,' Pinault said in the release. 'From 2023, I launched a reflection on the evolution of the Group's governance. It was in this context that I met Luca de Meo. His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision and steer this chapter in our Group's history.' De Meo comes to Kering after spending 30 years working in the automotive industry, per the release. During time as CEO at Renault, he helped engineer a turnaround, according to a press release announcing his exit. De Meo began his career at Renault before leaving to hold positions at Toyota Europe, Fiat, Volkswagen Group and Audi. He returned to Renault in 2020. 'I would like to thank François-Henri Pinault and the Board of Directors for choosing me to lead Kering into this new phase of development,' de Meo said in the Kering release. 'I am approaching this new professional challenge with enthusiasm, eagerness, and confidence, inspired by the strength of the Group's brands and the expertise of its people. I am convinced that together we will continue to make Kering an essential player in the luxury industry.' Last year, Kering appointed new CEOs at Saint Laurent, Balenciaga and Gucci. The company also named a new deputy CEO in 2023. Recommended Reading Gucci names new artistic director Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
