Luxury Gamble: Can Luca de Meo Turn Kering's Fortunes?

In a daring move, Francois-Henri Pinault has appointed former Renault boss Luca de Meo to steer luxury giant Kering out of troubled waters. The decision comes amidst challenges of declining sales and mounting debt that threaten the luxury conglomerate's stability.

De Meo, celebrated for his turnaround efforts at Renault, faces a daunting task as he transitions into the luxury sector with Kering. His biggest hurdles include revitalizing the iconic fashion house Gucci and addressing Kering's strategic acquisition plans, including the remaining stake in Valentino.

Investors have reacted positively to the announcement, with Kering's stock seeing a significant rise. Yet, as de Meo steps into this new role, the luxury sector will keenly watch if he can replicate the successes of other cross-sector leaders.

(With inputs from agencies.)