A Gucci store, operated by Kering SA, in the Sanlitun area of Beijing, China, on Saturday, October 12, 2024.
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French fashion house actions Barrier On Monday, 7% appeared in the reports that have designated the stranger of the Luca de Meo industry as CEO of the group. It comes when the owner of the besieged Gucci and Saint Laurent brands embarks in the last phase of their response effort.
The departure of the veteran of the MEO car as CEO of Renault was confirmed on Sunday, and the French car manufacturer said in a statement that he was renouncing “to assume new challenges surpassed to the automotive sector.”
Kering’s MEO’s move was first reported by the French newspaper Le Figaro on Sunday. Kering declined to comment on the reports when contacted with CNBC.
The shares quoted 7.2% at 8:34 am London time, since investors and analysts cheered the reports. Renault’s actions, meanwhile, show 7%.
“Brand management and marketing are [de Meo’s] Forte, which fits what the luxury industry does, “Bernstein analysts wrote in a note on Monday.
It is considered that the MEO has a solid history, after having worked in the car sector for 30 years, even in ToyotaFiat and Volkswagen. The Italian is largely attributed to the duration of Renault’s change in his five years to the helm, with actions an increase of approximately 90% during the period.
The challenges facing the luxury sector, however, are not large, with kering among the biggest lagging, since buyers have fallen in love with their Star Gucci label. The actions have yielded around 60% in the last two years, caused by a series of gains and designer changes in Gucci.
The current CEO and president of Kering, François-Henri Pinault, a member of the family that controls the group, has the main works for two decades, but is actively working on their succession, Chordination to Reuters, titling Fuentes. According to the reports, Pinault intends to divide the roles of the president and the CEO, according to the sources. It was not clear to remain chair.
Thomas Chauvet, Citi Senior Capital Analyst, praised the change of Renault of Meos, including his embrace of technological innovation and the elevation of the brand. However, he pointed out that the challenges of the possible new role would be significant.
“The execution of the changes of the luxury brands has become more complex, long, expensive and much less friendly to the public market, which reflects the preference of the consumer for the best brands instead of the transition and a significant interruption of P&L of greater P&L.
“There is still a considerable amount of work ahead in Gucci and Saint Laurent … to rejuvenate both brands and generate a constant flow of income and cash flow for the group, what, if achieved, could result in a significant multiple resumption,” Hey added.
In April, Kering recorded a 14% decrease of 14% worse than expected in sales of the first quarter and pointed to the winds against macroconomic ahead. Gucci sales, which make almost income or groups, losses led, falling 25% into a comparable base.
