Kering Shares Surge 10% on De Meo CEO Appointment

Shares in Kering, the luxury group that owns Gucci, surged on Monday following reports that Luca de Meo, the outgoing CEO of French automaker Renault, was set to take over as the chief executive of Kering. This unexpected leadership change has sparked significant interest and speculation within the luxury and automotive sectors.

De Meo's departure from Renault comes at a critical juncture for the automaker, which has been navigating strategic challenges and seeking to solidify its market position. His potential move to Kering, a company that has been grappling with the task of revitalizing its flagship brand Gucci, has been met with a mix of optimism and caution from analysts. De Meo is known for his skills as a communicator and marketing expert, having brought stability to Renault during a period of turmoil following the scandal involving Carlos Ghosn, the former head of the Nissan-Renault alliance. Under his leadership, Renault accelerated its shift to electric vehicles and pushed for an upmarket move, which helped steer the company out of trouble. Renault also owns the Dacia, Alpine, and Lada brands.

Kering has struggled to turn things around at Gucci, the Italian fashion house famous for its handbags and which accounts for half of the group’s overall sales. Previous reports have indicated that the group’s chief executive Francois-Henri Pinault would stay on as chairman of the group in a management shake-up. De Meo's appointment, if confirmed, could bring a fresh perspective and strategic direction to the luxury group, leveraging his proven brand management skills to revitalize Gucci and other Kering brands.

The luxury industry is closely watching this development, as de Meo's move could have far-reaching implications for both Kering and the broader sector. The complexity of reviving an iconic brand like Gucci is significant, demanding careful strategy and execution. The industry awaits to see if de Meo's leadership can craft another success story, potentially invigorating Kering and setting a new standard for luxury brand management.