Gucci owner Kering sees stock jump after Renault CEO quits to lead the luxury group
Shares in Gucci owner Kering jumped Monday over reports that the outgoing boss of French automaker Renault would take over as chief executive of the struggling luxury group.
Renault shares, however, fell following its announcement Sunday that Luca de Meo, 58, would step down on July 15 “to take on new challenges outside the automobile sector” after five years at the helm of the company.
Le Figaro newspaper reported that de Meo would take over at Kering, the French luxury group that owns Gucci, Yves Saint Laurent, Balenciaga and other premium brands.
Kering has struggled to turn things around at Gucci, the Italian fashion house famous for its handbags and which accounts for half of the group’s overall sales.
Previous reports have said the group’s chief executive Francois-Henri Pinault would stay on as chairman of the group in a management shake-up.
Kering shares rose more than six percent to 183 euros ($212) in morning deals at the Paris stock exchange.
Shares in Renault fell 6.7 percent to 40.10 euros.
Known as a skilled communicator and marketing expert, de Meo is credited with bringing stability to a company that was in turmoil when he took over in 2020.
The automaker was reeling from more than a year of crisis in the wake of the scandal involving Carlos Ghosn, the former head of the Nissan-Renault alliance who fled Japan to avoid trial.
De Meo accelerated the group’s shift to electric vehicles and pushed for an upmarket move in an effort to steer the company out of trouble. Renault also owns the Dacia, Alpine, and Lada brands.
This story was originally featured on Fortune.com