Luxury group Kering has appointed Luca de Meo — the former CEO of Renault — as its new Chief Executive Officer, marking a pivotal shift in leadership as the company seeks to revive the fortunes of its flagship brand, Gucci. The transition will take effect in September 2025, as de Meo replaces François-Henri Pinault, who remains Chairman of the board.
The move comes amid mounting investor pressure. Gucci, once Kering’s crown jewel, saw revenues plummet 25% in the first quarter of 2025, underscoring the brand’s struggle to compete with rivals like Hermès and LVMH in an evolving luxury market that increasingly favors minimalism, heritage, and experiential authenticity over bold logos.
A Bold Hire from the Auto Industry
De Meo’s background is unconventional for the fashion world. He is widely credited with turning around Renault through the "Renaulution" strategy, which focused on operational discipline, innovation, and targeted expansion. Kering appears to be betting that a similar approach — grounded in structured transformation and outsider perspective — can breathe new life into Gucci’s global positioning.
The market responded swiftly to the news. Kering shares surged by 7% following the announcement, signaling investor optimism that de Meo’s outsider lens could catalyze overdue reforms within Kering’s luxury portfolio.
Mounting Challenges Across the Portfolio
Gucci isn’t Kering’s only concern. The group is grappling with margin pressure, a ballooning debt load following its acquisition of high-end fragrance house Creed, and slower growth at brands like Bottega Veneta and Balenciaga. Unlike its better-performing peers, Kering has struggled to regain post-pandemic momentum.
Analysts say the group must rebalance its brand mix, reduce dependency on Gucci, and deliver a modern luxury experience that resonates with both Gen Z and affluent consumers in China and the U.S. De Meo’s appointment is seen as a strategic reset to steer Kering toward sustainable growth and digital relevance.
Luxury’s Next Chapter: Tech, Sustainability, and Meaning
The luxury landscape is changing. Consumers are demanding more sustainable, tech-enabled, and emotionally resonant experiences. De Meo is expected to bring a systems-thinking approach to digital transformation, ESG integration, and customer experience innovation — areas where Kering has lagged behind LVMH.
The first key milestone for de Meo will be Kering’s second-quarter earnings, due in late July. Investors will be looking for early signs of stabilization, especially in Gucci’s turnaround strategy and the performance of recently acquired businesses.
Conclusion
Kering’s choice of de Meo signals a break from convention — and a bet on change. For a company at a crossroads, that may be exactly what’s required to reposition Gucci and its sibling brands for the decade ahead.
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