Kering Turns to Former Renault CEO Luca de Meo to Steer Its Transformation

Kering may have found its next chief executive. Luca de Meo, currently CEO of Renault, is set to leave the automotive group on July 15 to begin a new chapter at Kering, according to French newspaper Le Figaro. While the luxury conglomerate has not confirmed the move, sources close to the matter suggest the appointment is all but finalized. At 58, the Italian executive is poised to swap engines for fashion, tasked with securing the future of one of the world’s leading luxury groups, now facing sector-wide turbulence and weakened performance across key brands.

“There comes a time in life when you know the job is done,” De Meo said in his farewell statement from Renault. “We achieved what many thought was impossible, and I leave behind a company that has been transformed and future-focused. I’m now ready to bring my experience to new industries and embark on fresh adventures,” the outgoing CEO added.

His departure has been interpreted as a coup by François-Henri Pinault, Chairman and CEO of Kering since 2005. At 63 years of age, the heir to the Pinault empire is preparing the executive handover and the separation of functions at the head of the group, which has been under pressure for years from institutional investors.

Luca de Meo is no stranger to the group that controls Gucci, Balenciaga and Saint Laurent. He is a manager with an international profile, a polyglot, with a long career in the transformation of industrial groups such as Fiat, Seat and, more recently, Renault. His career, moreover, began precisely in the house of the rhombus, before returning as CEO in 2020, in the midst of the crisis caused by the Carlos Ghosn scandal.

The future CEO of Kering has an international profile and extensive industrial experience.

De Meo not only stabilized the group, but also made it profitable. Under his leadership, Renault launched the Renaulution plan, focused on electrification, range expansion and operational rigor. The result was the highest operating profitability in the group's history and a substantial improvement in margins, despite the adverse macroeconomic context.

His skills as a communicator, strategist and marketing man are now called upon to play a new role in luxury. Kering faces major challenges: reduced margins, growing debt, unstable creative directions and a weakened image compared to its major competitors, LVMH and Hermès.

In just two years, Kering has lost almost 60% of its market capitalization. Sales fell from more than €20 billion in 2022 to just over €17 billion in 2024. Operating profitability has fallen from 27.5% to 13.4%, and net profit has contracted by more than half.

The main culprit in this erosion has been Gucci, until recently the group's growth engine. The Italian house's sales fell 21% in 2024 and another 25% in the first quarter of 2025. Creative direction has passed from Alessandro Michele to Sabato de Sarno (briefly and unsuccessfully) and, after his departure in February, to Demna Gvasalia, artistic director of Balenciaga. The first collections of the new Gucci will not be known until the end of 2025.

Kering has seen its sales fall from 20 billion euros to 17 billion euros in just two years.

In parallel, Kering has tried to diversify. In 2023 it acquired the Creed perfumery brand for €3.5 billion, launched Kering Beauty and bought a significant stake in Valentino. It has also executed real estate transactions that have raised its net debt to €10.5 billion at the close of 2024, compared with a virtually debt-free position three years earlier. These decisions have generated skepticism in the market, with two rating downgrades having already materialized and a third on the horizon.

De Meo's appointment would allow Kering to implement a long-awaited change of structure. In 2023, Pinault had taken a first step by appointing Francesca Bellettini as deputy CEO for brand development, and Jean-Marc Duplaix as head of operations and finance. The arrival of a new CEO like De Meo would serve to complete the separation of powers, with Pinault focused on the presidency. Through Artémis, the Pinault family retains 42% of the capital and controls more than half of the voting rights.

For the moment, Kering has not officially commented on the information, but the announcement of the signing should be forthcoming.