Renault CEO Luca de Meo Expected to Lead Kering Amid Luxury Sector Challenges

Kering, the luxury fashion conglomerate known for brands like Gucci and Balenciaga, is undergoing a major leadership transition with Luca de Meo set to become its first external CEO, succeeding Francois-Henri Pinault who will remain chairman. De Meo, credited with revitalizing Renault through strategic product shifts and operational acumen, is expected to bring fresh perspectives to address Kering's ongoing structural challenges and declining sales, particularly at Gucci. The company is also splitting the CEO and chairman roles to enhance governance and focus on recovery efforts amid a luxury market downturn and financial pressures, including significant debt and a 75% share price drop from its 2021 peak. Despite the challenges, Kering is pursuing strategic acquisitions such as stakes in Valentino and Creed to boost its luxury portfolio. This leadership change reflects Kering's commitment to stability and growth through clear succession planning and innovative leadership amid a challenging market environment.