France-based luxury conglomerate Kering SA has appointed Italian executive Luca de Meo, known for revitalizing Renault SA, as its new CEO. With no prior fashion industry experience but a record of bold brand-building in the automotive sector, de Meo takes over at a time when Kering, including key brand Gucci, faces major challenges from market slowdown, rising debt, and competitive pressure from rivals like LVMH.
Luxury group Kering SA, headquartered in Paris, France, has announced the appointment of Luca de Meo as its new Chief Executive Officer. De Meo, an Italian national known for leading the turnaround of French carmaker Renault SA, is stepping into the luxury sector for the first time — a bold move as the company battles slowing growth, especially in its flagship brand Gucci.
Although de Meo lacks experience in the fashion or luxury goods industry, he is celebrated for his success in reviving struggling automotive brands, notably returning Renault to profitability despite challenges such as the electric vehicle shift and competitive pressure from Chinese automakers. At Renault, he also demonstrated an affinity for high design and branding — often appearing in tailored suits and developing stylish, emotionally resonant vehicles like the new Renault 5 EV.
Kering, under long-time chairman François-Henri Pinault, owns iconic fashion labels including Gucci, Yves Saint Laurent, and Bottega Veneta. The group has suffered steep market losses in recent years, with shares falling nearly 80% since their 2021 peak. Recent efforts to revamp Gucci, including management changes and designer shifts, have failed to stop the decline.
De Meo’s appointment sent mixed signals to the market. While Kering shares had previously jumped on speculation, they fell by as much as 2.3% in early Paris trading following the announcement. Renault’s stock, meanwhile, remained steady after an 8.7% drop the previous day.
Industry analysts are watching closely. “De Meo has a titanic challenge ahead,” said Bernstein analyst Luca Solca. “Investors want to hear a clear vision. More of the same won’t cut it.”
De Meo’s resume includes stints at Fiat, Volkswagen AG, and ultimately Renault, where he oversaw partnerships with fashion houses like Agnès B and revamped its Formula 1 team under the Alpine brand — efforts to position it as a stylish performance brand akin to Ferrari.
In addition to revitalizing Gucci, de Meo will be expected to steady a leadership team that has seen multiple changes, reduce Kering’s rising debt burden, and reenergize internal teams. Critics, like UBS’s Zuzanna Pusz, warn that his lack of sector-specific experience could shift focus toward cost-cutting rather than growth.
However, many believe de Meo’s brand acumen, multilingualism, and bold thinking may suit Kering’s needs. “He has great brand insight and re-energizes the teams he works with,” said Professor Fabrizio Ferraro of IESE Business School. “That’s exactly what Kering needs now that the usual luxury playbook has run out of steam.”
De Meo’s appointment represents a significant shift for Kering, which is betting that an outsider’s fresh perspective may be the formula needed to restore its place among top-tier luxury leaders like LVMH and Hermès International.
