Kering has found its new CEO

Kering has a new CEO. All preliminary reports mention the Italian Luca de Meo, who just yesterday left Renault after five years at the company, which he led for the past five years, and is now ready to take operational leadership of the world’s second-largest luxury group. Luca de Meo's move from the automotive industry to the luxury sector represents one of the most unexpected and potentially revolutionary leadership changes in recent years. The announcement comes amid intense speculation, fueled by Le Figaro, which claims de Meo is set to take over operational leadership at Kering, the parent company of Gucci, Saint Laurent, Balenciaga, Bottega Veneta, and Alexander McQueen, which in recent years has seen its business prosperity decline. So much so that, with the arrival of the potential news, Kering shares rose by 7.2%, and several analysts already believe his profile matches the group’s current needs: a leader capable of steering complex transformations, strengthening global operations, and reviving brands in a competitive and rapidly changing landscape. According to Luca Solca of Bernstein, interviewed by WWD, «Kering needs change, performance has continued to worsen», describing de Meo as an executive known for «product innovation, technological innovation, electric transition, brand relaunch, and return to growth and profits».

De Meo, who boasts over thirty years of experience in the automotive sector with roles at Fiat, Alfa Romeo, Toyota, Volkswagen, and Seat, has been widely recognized for leading Renault's modernization. Under his leadership, the company took a bold turn toward electrification, launching a series of electric vehicle initiatives, restructuring its twenty-year strategic alliance with Nissan, and focusing on a brand relaunch and technological innovation, helping Renault emerge from a difficult financial phase with renewed momentum toward profitability. The question on everyone’s lips is perhaps philosophical: is there really much difference between luxury and automotive? Surely, the fashion world is more dominated by aesthetics, storytelling, and cultural desire than the automotive world, but perhaps, in essence, a fresh perspective on Kering’s business is truly needed. His appointment as Kering's CEO represents a turning point for the group. Something new must be tried: the group is coming out of a period of intense creative and financial instability, particularly in the case of Gucci, whose sales have been in prolonged decline due to changing consumer preferences and executive turnover that has slowed its recovery. Since its stock peak in mid-2021, Kering has lost about 78% of its market value. In 2025 alone, the group’s shares have fallen by 28%, reflecting investor disillusionment with its turnaround plans. Over the past two years, the stock has shed over 60% of its value, a dramatic drop for what was once considered among the most solid players in European luxury. Meanwhile, Kering has accumulated over €10.5 billion in debt, further burdening its balance sheet and increasing the risk of new downgrades from rating agencies.

To ease the debt pressure, the group has begun selling off some real estate and restructuring its debt to convert it into cash injections. But in business, problems from below often stem from above, and the issue of leadership has become increasingly urgent. François-Henri Pinault, chairman and CEO since 2005, had been actively working on his succession. As we mentioned Friday, he will retain the chairmanship of the board as well as control of Kering’s parent company, Artemis, while the operational leadership of his fashion business will be entrusted to the new leader. Nevertheless, the road ahead is anything but easy. Nicolas Chauvet of Citi Research also told WWD that today turnarounds in luxury are slower, more expensive, and more complex than in the past, as consumers tend to prefer already-established brands, while those in transition face challenges regaining relevance. According to Chauvet, a combination of strategic investment, creative rigor, and operational consistency will be needed to bring these brands back to generating steady revenues and cash flow. One encouraging sign is the recent appointment of Demna as Gucci’s creative director, a role he will assume next month. The architect of Balenciaga’s revival will debut his first collection for Gucci at Milan Fashion Week in September. His radical style, paired with de Meo’s potential executive leadership, could usher in a new era of synergistic collaboration between creativity and management.