Could Pinault step down from leading Kering?

Kering’s efforts to stabilize its situation not only continue but are accelerating. According to a report by Challenges, also picked up by AFP and MF Fashion, François-Henri Pinault, the current Chairman and CEO of the Kering group, is reportedly considering stepping down from his operational role, while retaining the position of Chairman of the Board. Such a move would mark the end of an era that began in 2005, when he took over from his father François Pinault at the helm of what was then PPR (later Kering), transforming it into the second-largest luxury empire in the world. The change in leadership would remain focused on operational strategy, as Pinault would stay on as Chairman, and rumors do not appear to concern the Artemis Group, the Pinault family’s holding company which owns Kering as well as Puma, Courregès, and Giambattista Valli; the auction house Christie’s and the Pinault Collection; six wine producers including Château Latour and Puligny-Montrachet; a cruise line, two newspapers, a publishing house, the Creative Artists Agency in Hollywood; a French Ligue 1 football team, a tech investment firm, and several start-ups. In short, while Kering may be facing issues, the Pinault empire remains far from any existential risk.

The potential leadership transition comes, as mentioned, at a critical moment for Kering. In the first quarter of 2025, the group posted revenues of €3.88 billion, down 14% compared to the same period the previous year. This figure continues a negative trend that has concerned analysts and investors for months: sales keep declining at a double-digit pace and the stock has lost around 45% of its value on the market over the past year. In this context, shareholder pressure has intensified, pushing Pinault to consider a leadership reshuffle to revive the business of a group now burdened with €10.5 billion in debt. Beyond the luxury market downturn, the group’s struggles have also stemmed from Kering’s heavy reliance on Gucci, which at one point accounted for 40% or more of total sales. When Gucci's sales began to drop, it dragged the entire group down. In an effort to reduce this dependence, Kering made large-scale investments which generated debt that has now destabilized the group’s stock performance — so much so that in recent months, reports of Kering’s financial maneuvers to divest high-profile real estate assets have multiplied.

According to sources, to manage the selection of the new CEO, Kering has entrusted the task to the executive search firm Jouve, which is handling the delicate process of identifying a successor. In line with a long-standing group tradition of promoting internal talent, top candidates include the powerhouse executive Francesca Bellettini, currently Kering’s Deputy CEO, responsible for the development of the maisons and coordination of their CEOs (meaning she oversees the entire fashion division); and Jean-Marc Duplaix, also Deputy CEO and current Chief Operating Officer. Both have worked closely with Pinault for decades, achieving significant success. However, the involvement of an executive search firm suggests that Kering is also considering external candidates. This could make sense, given that the group might benefit from a new perspective and a different approach moving forward.