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Bloomberg Quint
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Gucci Owner Kering Turns To Renault CEO In Turnaround Bid
- Kering SA is set to name Renault SA's CEO, Luca de Meo, as its next CEO in a bid to turn around the struggling Gucci fashion label.
- De Meo is credited for doubling Renault's shares during his tenure and is seen as adding gravitas and experience to Kering.
- Kering considers splitting CEO and chairman roles currently held by Francois-Henri Pinault, amidst significant share value decline and Gucci's challenges.
- Renault under De Meo's leadership surpassed Nissan in market value, returned to profit, and formed partnerships with technology giants.
- Kering, led by Pinault for two decades, faced challenges with Gucci's performance, brand controversies, and debt reduction efforts.
- De Meo's appointment might bridge cultural divides within Kering, which owns Italian brands like Bottega Veneta and Pomellato.
- Questions arise about the future of top Kering executives under Pinault following De Meo's appointment.
- Luca Solca, luxury analyst at Bernstein, views the choice of De Meo as a positive step but highlights the need for effectiveness in the new industry.
- Kering's turnaround efforts also involved new CEO appointments for various labels and contemplation of leadership restructuring.
- De Meo's success in revitalizing Renault's trajectory and forming strategic partnerships supports Kering's optimism for Gucci's revival.
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