Kering, the beleaguered owner of Gucci, Saint Laurent, Balenciaga and other big fashion brands, on Monday announced Luca de Meo, the former boss of the French carmaker Renault, as its new chief executive, hoping the veteran auto industry leader can help revive the fortunes of the luxury goods giant.
Mr. de Meo, 58, resigned on Sunday from Renault, which he had run since 2020. He also holds stints at Volkswagen, Fiat and Toyota under his belt, but has never worked in the fashion industry before. On Sept. 15, he will become the new leader of Kering, the company said in a statement, replacing its longtime chief executive, Francois-Henri Pinault.
“The group is ready for a new stage in its development,” said Mr. Pinault in the statement. Mr. de Meo “is the leader I was looking for to bring a new vision and steer this chapter,” he added.
Mr. Pinault, 63, the billionaire scion of one of France’s best-known families, has been the chairman and chief executive of the group since 2005, when he first took the reins of his father’s retail conglomerate Pinault-Printemps-Redoute and turned it into the luxury goods maker Kering in 2013. For a time, the company enjoyed spectacular growth, fueled by Gucci, which accounts for almost half of Kering’s revenue.
For a time, Kering was almost seen as a rival to LVMH, the French luxury conglomerate led by Bernard Arnault, but it struggled after sales fell across its stable, including Gucci, amid an upheaval among designers and executives and a wider slowdown in the global luxury market in the wake of the pandemic. The company has taken on more than 10 billion euros in debt, or $11.6 billion, and its share price has fallen 78 percent from its peak in mid-2021.
In recent months, scrutiny of Mr. Pinault’s ability to continue as chief executive increased, as did theories around a possible succession plan involving a candidate from outside the Pinault family.
Kering shares, which rose as much as 10 percent Monday morning when media reports of the appointment first surfaced, closed 13.4 percent higher in Paris, a strong signal of market support for Mr. Pinault’s decision to step aside.
Mr. de Meo will work closely with two deputy chief executives recently appointed by Mr. Pinault, Francesca Bellettini and Jean-Marc Duplaix. The statement from Kering said that Mr. Pinault would remain on as chairman. Stepping away from the C-suite may give Mr. Pinault time to focus on CAA, the Hollywood talent agency in which the Pinault family office bought a majority stake in 2023. CAA represents a roster of celebrities, including Salma Hayek Pinault, Mr. Pinault’s wife.
Luca Solca, an analyst at Bernstein Research, said Mr. de Meo’s experience navigating the challenges of the auto world made him well suited to lead Kering. Rivals including Chanel and Audemars Piguet have also recently hired chief executives from outside the luxury sector.
“Luca de Meo comes in with a strong track record of success in different automotive companies,” said Mr. Solca, noting Mr. de Meo’s launch of the modern-era Fiat 500 and his ability to make Renault the best performing carmaker in Europe, with shares up about 90 percent over the past five years. “Brand management and marketing are his forte, which dovetails with what the luxury industry does.”
Still Mr. de Meo, an Italian who also speaks English, French, German and Spanish, which will help him run a multinational company, faces considerable challenges. The biggest will be whether the designer Demna can mastermind a successful new chapter for Gucci, which has had three creative directors in as many years. Other brands are also at the start of creative reboots: Pierpaolo Piccioli was announced as the new creative director of Balenciaga last month; like Demna, he will present his debut for the house in September, as will Louise Trotter, who joined Bottega Veneta at the end of last year.
As the luxury sector continues to grapple with heightened uncertainty from President Trump’s unpredictable tariff policies, as well as a slowdown of sales in China and growing consumer frustration over price increases, the stakes remain high.
“Execution of luxury brand turnarounds has become more complex, lengthy, costly, and far less public-market-friendly, reflecting consumer preference for top brands rather than those in transition,” a Citigroup analyst, Thomas Chauvet, wrote in a research note.
Elizabeth Paton reports on the global fashion industry for The Times, a topic she has covered for more than a decade. She is based in London.
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