Kering bets on Renault boss Luca de Meo to revive Gucci

Francois-Henri Pinault, the billionaire head of Kering, has chosen Luca de Meo, the current CEO of Renault, as his successor. Kering's shares jumped 13.5% after the news, indicating investor optimism. De Meo will take the helm in September, with Pinault remaining as chairman of the board of directors. Pinault praised de Meo's experience and understanding of brands, saying he is the leader needed to bring a new chapter to the company. Kering has struggled in recent years, with shares falling 72% due to the decline of its biggest brand, Gucci. Gucci's sales fell 25% in the first quarter, and the brand has lost appeal among consumers, particularly in China. Attempts to revamp the brand, including the appointment of a new creative director, have not impressed investors. De Meo faces a significant challenge in turning around Kering and Gucci, with one analyst calling it a "titanic challenge". Despite this, de Meo's experience and skills in brand management and marketing are seen as a positive step forward.