What: Kering appoints automotive industry veteran Luca de Meo as CEO while François-Henri Pinault transitions to chairman role, marking the first external chief executive in the group's history.

Why it is important: This strategic leadership change, amid Kering's significant market challenges, highlights the growing trend of luxury retailers seeking external perspectives to drive digital innovation and operational efficiency.

Kering's appointment of Luca de Meo as CEO marks a pivotal moment in the luxury group's history, as François-Henri Pinault steps into the chairman role. De Meo, known for successful turnarounds at Renault and other automotive companies, brings extensive experience in operational transformation and brand revitaliSation. The 58-year-old executive's track record includes returning Renault to profitability within 18 months and successfully repositioning brands like Fiat and SEAT in competitive markets. This leadership change comes at a crucial time for Kering, as the group faces significant challenges, including a 25% decline in Gucci sales and broader portfolio performance issues. The appointment reflects Kering's commitment to fresh perspectives, with De Meo's multilingual capabilities and proven expertise in managing complex transformations seen as key assets. The group's €10.5 billion debt and declining share value add urgency to this strategic shift, while the separation of chairman and CEO roles signals a new era in corporate governance for the luxury conglomerate.

IADS Notes: Kering's appointment of Luca de Meo as CEO in June 2025 reflects a broader transformation in luxury retail leadership. This move aligns with industry-wide strategic recalibration trends identified in January 2025, where luxury groups focused on conducting strategic resets and bridging talent capability gaps. The decision to split chairman and CEO roles mirrors recent governance restructuring seen in March 2025 when El Corte Inglés streamlined its decision-making processes by abolishing its executive committee. De Meo's appointment, coming from outside the fashion industry, follows a pattern of luxury retailers seeking leaders with diverse expertise, as demonstrated by Saks Global's December 2024 transformation toward technology-driven operations. This leadership change occurs amid a wave of CEO transitions across the luxury retail sector since October 2024, as companies adapt to evolving market conditions and digital transformation needs.

Why Kering picked a fashion outsider to be its next CEO