Kering's Bold Bet: Luca de Meo's Task to Revitalize Luxury Empire
Francois-Henri Pinault has recruited Luca de Meo, Renault's boss, to tackle Kering's declining sales and rising debt. De Meo, known for turning around Renault, faces challenges, including Gucci's struggles and a costly potential acquisition of Valentino. Industry giants' past successes inspire hope for de Meo's cross-sector move.
Luca de Meo, renowned for his successful turnaround at French carmaker Renault, has been tapped by Francois-Henri Pinault in a daring move aimed at rejuvenating luxury conglomerate Kering. The decision comes amid growing concerns over the group's plummeting sales and mounting debt.
The announcement signaled a pivotal shift, with Kering shares surging over 12% as investors reacted positively to de Meo's appointment. Experts suggest Kering's troubles extend beyond Gucci's challenges, and de Meo is viewed as a critical asset despite his lack of luxury sector experience.
In addition to cost-cutting measures, de Meo faces the complex task of potentially acquiring the remaining 70% of Valentino. The luxury giant's connections to cross-sector successes offer a glimmer of hope as de Meo transitions into his new role.
(With inputs from agencies.)
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