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Renault CEO Luca de Meo is stepping down to pursue new challenges outside the automotive industry and is rumoured to become the new CEO of luxury fashion group Kering, according to newspaper Le Figaro.
Shares in Kering, which owns brands like Gucci, Saint Laurent, Bottega Veneta and Balenciaga, reportedly gained around 5% on trading platform Tradegate in wake of the news, while Renault shares fell around 3%.
De Meo has a strong reputation for turning around the fortunes of Renault in his five years at the helm, overseeing a strategic shift towards electric vehicles and an overhaul of the French carmaker’s long-term alliance with Nissan.
The Italian, who will leave Renault in mid-July, will reportedly replace Kering CEO Francois-Henri Pinault, whose family controls the luxury goods maker. He has been leading the company for the past 20 years – taking over from his father and company founder Francois Pinault, in 2005.
Reuters said Kering shares have lost more than 60% of their value in the last two years, marked by a string of profit warnings and designer changes at Gucci, described as “a former cash cow for the company” and still its most important brand by sales and profits.
Under Francois-Henri Pinault’s leadership, Kering became a pure luxury player and enjoyed years of “spectacular growth”, in large part thanks to Gucci’s success.
However, since the pandemic Kering has struggled to reinvigorate the brand and also took on more than €10 billion in debt – now exposing it to the risk of another credit downgrade.
Time will tell if De Meo is the man to lead the turnaround and bring back some former glory to the beleaguered fashion giant.
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