Kering's Luxury Division To Be Headed by De Meo
In a significant move for the luxury fashion industry, Kering, the parent company of renowned brands such as Gucci and Saint Laurent, has announced that Luca de Meo will take over as its CEO, effective from September 15, 202x.
The outgoing CEO position was previously held by François-Henri Pinault, who will remain as the chairman of the board. Pinault appointed de Meo to steer the company in a new direction, with the aim of reversing the declining sales of Gucci and Saint Laurent.
De Meo, known for his ability to revive auto brands, leaves behind his role as the leader of the French Renault Group. He is credited with saving Fiat by relaunching the Fiat 500 in 2007 and spearheading Renault's turnaround.
The appointment comes at a challenging time for Kering. The company's operating margin has been reduced from 24.3% in 2023 to 14.9% by the end of 2024, and Gucci's sales fell 21% in the same year. Additionally, Chinese customers are buying less from Kering, and Trump's tariffs could potentially jeopardize the American appetite for Kering's portfolio.
As a result, de Meo has outlined a roadmap to success that includes the closing of inefficient stores and the reduction of a €10.5 billion debt. His multilingual skills—he speaks Italian, French, English, German, and Spanish—will undoubtedly aid him in navigating the complex global luxury fashion market.
De Meo's decision to leave Renault may have been influenced by his paycheck, given the French state's smaller compensation packages compared to the private sector. In his departure statement, he expressed a desire for "new adventures."
Kering has lost €2.5 billion (approximately $2.9 billion) in revenue in the past 12 months. With de Meo at the helm, the company hopes to reclaim its position as a leader in the luxury fashion industry. Francois Henri Pinault will continue to guide the company from his position as chairman of the board, offering his support and expertise to de Meo as he embarks on this new chapter.
