The parent company Gucci got a new head to direct it through a rough patch.
KERING, which also owns YSL, Bottega Veneta and Balenciaga, Declare In a press release on Monday, Luka de Miu, former CEO of Renault, CEO.
The luxury retail company said that De Meo will start the new role in September, according to the approval of the KERING Board of Directors during the shareholders meeting that month.
In the press statement, De Meo said it will work to “continue making KERING a key player in the luxury industry.” KERING did not respond to a comment from Business Insider.
De Meo will succeed the CERING CEO, François-Heenri Pinaut, who has led the luxury company over the past two decades. Pinaut will remain as KERING Chairman, according to the statement.
In 2005, he shown the leadership of the company founded by his father, Pinault-PRINTEMPS-REDOUTE. The company was renamed to KERING in 2013.
The PINALT family also owns Artémis, a holding company that owns 42 % in Kering. Artémis Investments include Puma and House House Christie.
The upcoming KERING leader is an old car warrior. De Meo began his career in Renault in 1992 and then moved to Toyota Europe, with other periods in Fiat and Volkswagen. Renault CEO has been over the past five years. The shares of the auto industry fell by more than 18 % last year.
His appointment comes at a decisive point for KERING, which has seen many quarters of consecutive revenues. Its revenues for 2024 fell to 17.19 billion euros, or 19.88 billion dollars, by 12 % compared to 2023.
The weak company continued until 2025. The first -quarter sales decreased compared to the previous year.
Gucci, the largest brand of KERING through the revenue share, had a particularly difficult quarter. Its sales decreased by 25 % compared to the previous year, as the consumer preferences moved away from the maximum and selective patterns in Gucci towards accurate and calm luxury.
KERING problems are not isolated: The luxury market has seen a slowdown in the past few years, due to changing consumer preferences, inflationary pressures, and political uncertainty all over the world. Luxury giants such as LVMH have witnessed low sales prices and the decrease in stock prices this year.
The price of KERING has increased by more than 11 % on Monday after the announcement of De Meo. The stock fell more than 36 % last year.
Analysts from Royal Bank of Canada wrote in Monday note that De Meo’s The situation as the KERING external “will add depth to the” leadership team and make it “more willing to make more striking decisions.”
The observation said: “His rich record in circumventing a French company will be particularly useful in KERING, from our point of view, which has been stable in business in recent years, with a recent focus recently on the shortcomings of leadership and governance.”
RBC also highlighted the lack of experience in industry.
They said: “We wonder if he has experience in the luxurious sector, despite his strong autobiography in terms of the point of view of the strategy and reliance data in the transformation.”
