Gucci Owner Kering Reportedly Taps Renault CEO As New Chief; Shares Move
(RTTNews) - Shares of Kering SA, the Gucci owner, were gaining around 11 percent in the Paris trading after media reported that the French luxury group is set to appoint Luca de Meo, the Chief Excutive Officer of French car major Renault SA, as its new Chief. Meanwhile, Renault shares were losing around 8 percent in Paris after the company confirmed the resignation of the CEO.
In a statement on Sunday, Renault Group announced that Luca de Meo has announced his decision to step down after 5 years at the lead, to pursue new challenges outside the automotive sector. Chairman Jean-Dominique Senard said the departure would be effective from July 15, until which the CEO will continue to perform his duties.
Renault added that its Board of Directors has initiated the process of appointing a new Chief Executive Officer based on the already defined succession plan.
Meanwhile, French newspaper Le Figaro reported that Kering will split up the chief executive and chairman roles and plans to appoint Luca de Meo as its new CEO.
Since 2005, French billionaire Francois-Henri Pinault has held the dual position of chairman and CEO at Kering, which owns major luxury brands including Yves Saint Laurent, Balenciaga and Bottega Veneta, along with core brand Gucci. Pinault's family controls the luxury conglomerate.
Kering recently reported a sharply lower profit in full year, primarily affected by weak sales.
In April, Renault reported a slight drop in revenues in its first quarter, despite increased sales volume. The company also reaffirmed its outlook for fiscal 2025.
In Paris, Kering SA shares were trading at 191.56 euros, up 11 percent, while Renault shares were at 39.59 euros, down 8.02 percent.
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