From Car Factory to Fashion Empire: Luca de Meo's Bold Move to Kering
Parijs, maandag, 16 juni 2025.
Luca de Meo, the dynamic 58-year-old CEO of Renault, is making a spectacular career switch by moving to Kering, the parent company of Gucci. After successfully transforming Renault over five years, he is now appointed to use the same magic wand at the luxury brand struggling with a 60% share price decline. The strategic appointment appears to be an attempt to break Gucci’s downward spiral, emphasising management skills over industry experience. François-Henri Pinault will step back to a non-executive chairman role, marking a significant administrative restructuring in the luxury fashion industry.
The Strategic Transition
Luca de Meo, the 58-year-old CEO of Renault, is making a remarkable career change by moving to Kering, the parent company of Gucci. After successfully leading Renault for five years, he is now appointed to conduct a similar transformation at the luxury brand currently facing significant challenges [1][2]. The appointment follows a period during which Kering’s shares have lost 60 percent in value [3].
Financial Challenges of Kering
The company has struggled with declining profit margins, with operational profitability dropping from 27.5% to 13.4% in just two years [4]. Gucci, Kering’s flagship brand, saw sales decline by 23% in the past year, contributing to a sharp drop in net profit to 1.13 billion euros [5].
Administrative Restructuring
François-Henri Pinault will step back to a non-executive chairman role, marking a significant administrative restructuring [6]. The choice of De Meo suggests a preference for management skills over industry-specific experience, similar to approaches at other luxury brands like Audemars Piguet and Chanel [7].
De Meo’s Background
De Meo has an impressive track record at Renault, where he transformed the company by strategically shifting towards electric vehicles and revising the alliance with Nissan [8]. His departure from Renault is planned for 15 July 2025 [9].