Kering's High-End Division Will Be Headed by De Meo

Kering Appoints Luca de Meo as New CEO Amidst Challenges

In a bid to revitalise its struggling portfolio, luxury fashion conglomerate Kering has appointed Luca de Meo as its new CEO. De Meo, a seasoned executive with a proven track record in the automotive industry, will take up the role on September 15.

De Meo, 58, is known for his ability to revive brands, having successfully relaunched the Fiat 500 in 2007, which saved the Italian carmaker from the brink of bankruptcy. He also played a significant role in Renault's turnaround, leading the French automaker before leaving in search of "new adventures."

De Meo's roadmap for Kering includes the closing of inefficient stores and a plan to reduce a €10.5 billion debt. These moves are seen as necessary to stem the losses that Kering has experienced in the past 12 months, with the company reporting a loss of €2.5 billion (about $2.9 billion) in revenue.

Kering, the parent company of Saint Laurent and Gucci, has been grappling with falling sales. Gucci's sales fell 21% in 2024, while Chinese customers are buying less from Kering. These challenges have led to a reduction in Kering's operating margin, which dropped from 24.3% in 2023 to 14.9% by the end of 2024.

François Henri Pinault, Kering's heir, has appointed de Meo as CEO to help reverse these trends. Pinault will remain as chairman of the board, providing strategic guidance to de Meo as he navigates the challenges facing Kering.

De Meo, a multi-lingual executive who speaks Italian, French, English, German, and Spanish, is seen as an outsider by Wall Street analysts. However, his proven ability to revive brands and his extensive experience in the automotive industry make him a strong choice to lead Kering.

One challenge that De Meo may face is Trump's tariffs, which could jeopardise the American appetite for Kering's portfolio. The impact of these tariffs on Kering's sales remains to be seen, but De Meo will need to find ways to mitigate their effects if he is to successfully turn around the company.

The name of the CEO who will replace Luca de Meo from September 15, 2025, has not been announced yet. Until then, De Meo will focus on implementing his roadmap and reviving Kering's struggling brands. With his proven track record and extensive experience, De Meo is well-positioned to lead Kering through its current challenges and towards a brighter future.