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François-Henri Pinault is to relinquish his role as CEO of Kering. Luca de Meo, who has been CEO of Renault since 2020, will succeed him, Kering confirmed on Monday. In anticipation of the news being confirmed, the luxury group’s stock rose 13 per cent on Monday.
The Milan-born, 58-year-old executive, whose exit from Renault is effective on 15 July, will assume the role at Kering on 15 September (subject to approvals), the group said. De Meo’s résumé also includes CEO of Seat, CMO of Volkswagen Group and CEO of Fiat.
"After 20 years of transforming Kering into a major global luxury player, the group is ready for a new stage in its development. From 2023, I launched a reflection on the evolution of the group’s governance. It was in this context that I met Luca de Meo. His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision and steer this chapter in our group’s history. It is with complete confidence that I am handing over the leadership of Kering and our teams to Luca. I will, of course, be at his side to accompany him in this new phase, as chairman of the board of Kering,” said François-Henri Pinault.
While de Meo, 58, is a true “car guy”, according to a source, and doesn’t have experience in the fashion industry, he has a strong sense of brand development, marketing and design, and can be credited for the successful relaunch of the Fiat 500 and the Renault 5.
“Brand management and marketing are his forte, which dovetails with what the luxury industry does — for which he seems passionate,” wrote Bernstein analyst Luca Solca in a note, who flagged de Meo’s affinity for the luxury space and Swiss watches in particular. “It is not hard to imagine how intriguing he found the Kering opportunity.”
At Renault, de Meo led a turnaround and restored profitability, which makes him a relevant choice at a time when Kering’s largest brand, Gucci, needs revitalisation.
Bruno-Roland Bernard, adjunct professor of finance at Institut Français de la Mode, says: “De Meo stands out among the CEO-level candidates: he is well-versed in the French business world, while very international with an Italian dimension, which is very much needed at Kering.” Kering’s portfolio of brands includes Italian houses like Gucci (approximately 45 per cent of the group’s sales in 2024) and Bottega Veneta. “De Meo has also been judged as a visionary for the electric vehicle transition, a cultural fit with Kering’s credentials in sustainability and incidental need for reinvention,” Bernard adds.
Pinault, who is 63, will retain his role as chair. He was handed over the presidency of Artémis, the main holding company behind PPR (renamed Kering in 2013), from his father, François Pinault, in 2003. In 2005, he became CEO of PPR. Despite recent challenges — particularly Gucci’s underperformance compared with peer companies and the stock market woes — his legacy will be the transformation of Kering from a group with an eclectic portfolio of businesses to one of luxury’s top players.
French weekly Challenges first reported on 12 June that the group was considering splitting the CEO and chair roles and that the search for a new CEO was led by recruitment firm Jouve Associés.
“This announcement [of Luca de Meo as new CEO] is likely to be taken positively near-term,” wrote Thomas Chauvet, managing director at Citi, in a note. “However, the execution of luxury brand turnarounds has become more complex, lengthy, costly and far less public-market friendly in the past few years, reflecting consumer preference for top brands rather than those in transition.”
“I would like to thank François-Henri Pinault and the board of directors for choosing me to lead Kering into this new phase of development. I am approaching this new professional challenge with enthusiasm, eagerness, and confidence, inspired by the strength of the group’s brands and the expertise of its people. I am convinced that together we will continue to make Kering an essential player in the luxury industry,” de Meo said.
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