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Kering Eyes Bold Leadership Shift as Fashion Giant Looks to Reignite Growth

Shares of French luxury conglomerate Kering soared by more than 10% on Monday following reports that Renault CEO Luca de Meo is poised to take the helm as the group’s next Chief Executive Officer. The development comes at a critical time for Kering, as it battles declining sales and seeks to revive its flagship brand, Gucci, and other high-profile labels like Saint Laurent.

The news, first reported by Le Figaro, triggered enthusiasm among investors, despite no formal confirmation from Kering. Analysts see the potential appointment of an industry outsider with a strong track record of corporate turnarounds as a strategic move that could reshape the group’s future.

From Cars to Couture: De Meo’s Big Move

Luca de Meo, a veteran with more than 30 years of experience in the global automotive sector, confirmed his resignation from Renault on Sunday. In a statement, Renault said that de Meo would leave the company by July 15, 2025, to “pursue new challenges outside the automotive sector.”

During his five-year tenure at Renault, de Meo led a significant 90% increase in the company’s share price, driven by aggressive restructuring, digital transformation, and a renewed focus on branding. His résumé also includes senior roles at Toyota, Fiat, and Volkswagen, where he earned accolades for his brand reinvention strategies and emphasis on design and innovation.

According to analysts at Bernstein, “Brand management and marketing are de Meo’s core strengths, making him uniquely suited to lead a luxury house like Kering.” They added that his ability to blend strategic vision with consumer-centric execution could be a much-needed catalyst for the fashion group.

Kering's Crisis: Weak Sales, Struggling Brands, and CEO Succession

Kering has faced mounting challenges in recent years. Once the crown jewel of the luxury sector, Gucci has lost its luster, with fashion-conscious consumers turning toward competitors like Dior, Chanel, and Louis Vuitton. Kering’s stock has plummeted over 60% in the last two years, dragged down by:

• Repeated profit warnings
• Designer reshuffles at Gucci
• A steep 25% drop in Gucci’s Q1 2025 sales
• High exposure to China’s luxury market slowdown

Kering’s current CEO and Chairman François-Henri Pinault, who has led the company for over two decades and is a member of the controlling Pinault family, is reportedly planning to split the roles of Chair and CEO. Reuters sources suggest that the company is actively executing a succession plan, though it remains unclear whether Pinault will retain his chairmanship.

The Gucci Problem: Reinvention Needed, But Risky

The urgent need to revitalize Gucci has put the brand at the center of Kering’s turnaround agenda. In March 2025, Kering promoted Demna Gvasalia, creative head at Balenciaga, to become Gucci’s new artistic director. His first full collection is expected to debut for the Spring/Summer 2026 season.

However, Gvasalia’s appointment has not been universally celebrated. Known for bold, sometimes controversial design choices, his earlier work has drawn scrutiny. Investors remain cautious, unsure if he can recapture Gucci’s former glamour while avoiding reputational pitfalls.

Meanwhile, Saint Laurent and Balenciaga have also experienced softer growth compared to competitors, further weakening Kering’s standing in a fiercely competitive luxury landscape.

Investors React: Kering Up, Renault Down

By early afternoon on Monday, Kering shares had jumped 10.4% on the Paris stock exchange, reflecting investor optimism about de Meo's potential appointment. In contrast, Renault shares fell by 7%, underlining market concerns about leadership instability at the French carmaker.

Thomas Chauvet, Senior Equity Analyst at Citi, praised de Meo’s track record in restructuring and innovation but cautioned that the luxury business presents a far more complex and uncertain path:

“Brand reinvention in luxury is costly, takes time, and carries significant risks. It requires deep cultural understanding and a long-term investment mindset — especially with shifting consumer trends and increased macroeconomic pressure.”

Luxury's New Battlefield: Innovation, Identity, and Consumer Loyalty

The broader luxury sector has been facing headwinds amid slowing global demand, inflationary pressures, and changing consumer behaviors. With high-income shoppers becoming more selective and younger buyers seeking authenticity and innovation, the days of easy growth may be over.

For Kering, the path forward involves more than just leadership change. Analysts emphasize the importance of investing in:

• Digital transformation and e-commerce
• Sustainability and ethical supply chains
• Experiential branding and Gen Z-focused campaigns
• Diversifying geographic exposure beyond China and Europe

De Meo’s track record of disrupting established industries and aligning legacy brands with emerging trends may provide the momentum Kering needs.

Can De Meo Bring Back the Glamour?

If confirmed, Luca de Meo’s leap from automotive boardrooms to the world of high fashion will be one of the most intriguing CEO transitions in recent years. His success at Renault proves he knows how to steer a struggling brand back to profitability — but fashion is a different beast, driven by emotion, image, and relentless reinvention.

Kering’s turnaround hinges on much more than just a leadership swap. But if de Meo can translate his branding prowess from cars to couture, it could mark a powerful new chapter for a group that once defined modern luxury.