The Betting Battle: Kering's Financial Transformation Under Luca de Meo
Short sellers have increased bets against Kering as Luca de Meo steps in as the new CEO. Despite a rise in stock prices after his appointment, concerns over the company's debt and declining sales continue, prompting strategic plans for restructuring and asset sales to restore investor confidence.
Short sellers have significantly increased their bets against luxury giant Kering, sparking pressure on newly appointed CEO Luca de Meo to revive confidence in the French group's financial standing. This strategic challenge follows a recent uptick in Kering's shares and de Meo's formal assumption of the CEO role.
The decision by Francois-Henri Pinault to bring de Meo, a former Renault CEO with a reputation for effective restructuring, gave Kering's shares a 33% boost. However, notable sales declines at key labels Gucci and Saint Laurent, combined with significant company debt, demand urgent corrective action.
Despite an initial easing of short-selling activities post-de Meo's appointment, the levels remain substantial relative to industry peers. To alleviate concerns, Kering announced debt reduction and store closures, alongside efforts to turn around the Gucci brand. New trademarks 'Conkering' and 'Reconkering' hint at anticipated strategic shifts.
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