Shares of French luxury group Kering rose more than 10% on Monday following widespread reports that Renault CEO Luca de Meo is set to take over as the company’s next chief executive.
The news was first reported by French daily Le Figaro, and while Kering has not confirmed the appointment, investor optimism around the potential leadership change drove one of the stock’s strongest recent performances.
By mid-morning in London, Kering shares were up 10.3%, while Renault shares fell around 7%, reflecting investor concerns about the auto group’s leadership transition. Renault confirmed on Sunday that de Meo will step down on July 15 to pursue “new challenges outside the automotive sector.”
De Meo, an industry outsider to luxury fashion, is credited with orchestrating a significant turnaround at Renault during his five-year tenure, which included streamlining operations, investing in electrification, and revitalizing the company’s relationship with Nissan. His broader experience includes leadership roles at Volkswagen, Fiat, and Toyota.
Despite lacking a background in fashion, analysts say de Meo’s branding and marketing expertise could align well with the needs of Kering, whose flagship brand Gucci has struggled with sales declines and leadership changes. Gucci’s revenues, which comprise nearly half of Kering’s total sales, fell 25% year-over-year in the first quarter of 2025, contributing to a 14% drop in group sales overall.
“Brand management and marketing are his forte, which dovetails with what the luxury industry does,” analysts at Bernstein noted.
De Meo’s rumored appointment would signal a significant shift for Kering, which has been led for two decades by François-Henri Pinault, who serves as both chairman and CEO. Reports suggest Pinault may remain as chairman while stepping aside as CEO.
Thomas Chauvet, senior equity analyst at Citi, praised de Meo’s strategic track record but cautioned that reviving a luxury brand poses a distinct set of challenges.
“Execution of luxury brand turnarounds has become more complex, lengthy, and costly,” he said.
Kering shares have fallen more than 60% over the past two years, under pressure from competitive headwinds, shifting consumer preferences, and ongoing internal restructuring. Analysts see a successful leadership transition as critical to restoring investor confidence and stabilizing the group’s performance.
With input from Market Watch, Reuters, Bloomberg, and CNBC.
