A major leadership change has been announced as Kering names de Meo CEO, appointing Luca de Meo, the current CEO of Renault, to lead the luxury conglomerate. The announcement, which confirmed widespread speculation, sent Kering’s shares soaring while Renault’s stock experienced a sharp decline. The decision has been positioned as a strategic move by Kering to navigate its ongoing financial and brand challenges.
This marks the first time an outsider will lead the family-controlled business. The Pinault family, which has overseen Kering’s rise into one of the world’s most powerful luxury empires, is expected to play a less direct role in day-to-day operations as de Meo takes the helm.
A Surprise Appointment from the Auto Industry
The appointment of Luca de Meo, a seasoned executive from the automotive sector, has raised eyebrows across both the luxury and business communities. Having led Renault through a period of substantial transformation, de Meo has been widely praised for his ability to revive aging brands and implement long-term strategies.
The selection of an auto industry veteran to guide Kering was not anticipated by many in the luxury fashion industry. Nonetheless, the move has been interpreted as a bold statement by the company’s board, reflecting its willingness to break from tradition in an effort to reclaim lost market share and reinvigorate flagship brands like Gucci, Balenciaga, and Saint Laurent.
Kering Names de Meo CEO Amid Recent Challenges and Strategic Response
Over the past few years, Kering has struggled with declining sales, intensifying competition, and brand fatigue—particularly within its crown jewel, Gucci. While competitors such as LVMH and Hermès have continued to experience growth and expansion, Kering has witnessed dwindling demand in key markets like China and North America.
To address these challenges, a broad restructuring plan has been introduced, and several executive shake-ups have been carried out. However, significant progress has not yet been achieved. It is hoped that de Meo’s experience in brand turnaround and operational efficiency will bring renewed vigor to Kering’s luxury portfolio.
Market Reactions and Stock Market Movements
Following the announcement that Gucci owner Kering appoints de Meo as CEO, investor sentiment shifted sharply. Kering’s stock jumped by over 5% in early trading on Monday, signaling strong market approval of the leadership shake-up. Conversely, Renault’s shares fell by more than 3% as concerns mounted over leadership stability at the automaker.
Analysts have interpreted the move as a win for Kering, noting that de Meo’s proven track record in revitalizing legacy brands could prove highly valuable in the fashion space. Meanwhile, Renault is now faced with the immediate challenge of finding a successor capable of maintaining the momentum de Meo had built.
Leadership to Begin on September 15
It has been confirmed that de Meo will officially assume the CEO role at Kering on September 15, 2025. Until that time, interim leadership will continue to be provided by current executives to ensure business continuity. His transition will be closely monitored by both luxury industry stakeholders and financial markets.
The recruitment of de Meo has reportedly been initiated months ago, with the final decision being approved after extensive consultation between the Pinault family and Kering’s board of directors.
Implications for Kering’s Brand Portfolio
The incoming CEO will be tasked with the revitalization of Kering’s entire luxury portfolio. In addition to Gucci, underperforming brands such as Bottega Veneta and Alexander McQueen will be expected to benefit from renewed strategic focus.
An internal review of brand positioning, supply chain efficiency, and digital transformation is likely to be conducted once de Meo takes over. His success at Renault, where he led a successful EV transition and product lineup restructuring, is anticipated to serve as a blueprint for change at Kering.
The ability to adapt and modernize brand appeal will be essential, particularly among Gen Z and millennial consumers, whose preferences are increasingly driven by sustainability, inclusivity, and digital experience.
A Historic First for Kering
The decision marks a significant departure from tradition for Kering. Historically, key leadership roles have been held by individuals from within the luxury or retail sectors. By turning to the automotive industry, a clear signal has been sent that new thinking and cross-industry innovation will be welcomed.
Observers have described this move as potentially transformative—not only for Kering but for the luxury sector as a whole. It is anticipated that other brands may follow suit in appointing leadership from non-traditional backgrounds to drive growth and respond to shifting global consumer dynamics.
Conclusion: A New Chapter Begins
The news that Gucci owner Kering appoints de Meo as CEO has ushered in a period of renewed optimism for the French luxury conglomerate. While significant challenges remain, the leadership transition has been welcomed as a necessary and potentially game-changing development.
As de Meo prepares to step into one of the most prestigious roles in the luxury industry, both his supporters and skeptics will be watching closely to see whether his automotive expertise can be translated into high fashion success.
