Investor optimism grows as Kering names Luca de Meo CEO
Following this week's disappointing first-half earnings, which included a 46% drop in net profit and further setbacks at Gucci, investors appear to be looking beyond near-term challenges and focusing on the group's long-term recovery efforts.
'The market is trying to look forward and anticipate future improvements,' said Bernstein analyst Luca Solca, noting a sense of growing investor optimism. Kering reported a 15% decline in group revenue for the second quarter, falling short of analyst expectations. Still, its stock rose about 5% by 9:30 a.m. GMT, making it one of the top-performing blue-chip stocks on the Paris exchange.
To address sliding sales and rising debt, Kering announced the appointment of Luca de Meo—former CEO of Renault—as its new chief executive, effective 15 September. De Meo will be the first external leader to head the group, which remains under the control of the billionaire Pinault family. François-Henri Pinault will continue to serve as chairman.
As part of its broader turnaround strategy, Kering has also named Demna as Gucci's new creative director. The designer is expected to introduce a new collection format in September, with a full runway debut planned for March 2026.
'The market will likely shift focus to continued cost discipline, the imminent arrival of new CEO Luca de Meo, and another attempt at relaunching Gucci,' said Citi analyst Thomas Chauvet.
Despite a 25% year-over-year drop in Gucci's second-quarter sales to €1.46 billion ($1.69 billion), Kering signaled early signs of improvement heading into the third quarter. UBS analysts noted stabilization, citing stronger retail performance and effective cost control. They also indicated that their earnings forecasts would remain unchanged 'for the first time in a while.'
'Although there is still a lot of uncertainty and work ahead, the first half left us feeling somewhat more positive,' UBS said.
($1 = 0.8657 euros)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
40 minutes ago
- Fashion Network
Gucci staff in Italy take industrial action over welfare payment dispute
Employees at fashion house Gucci in Italy are threatening strike action, accusing the Kering -owned brand of denying them a welfare bonus, Italian trade unions said on Tuesday. Around 1,000 retail and logistics employees across Italy declared a "state of unrest", the unions said, which under Italian labour laws is a form of industrial action that can lead to strikes. The Filcams Cgil, Fisascat Cisl and Uiltucs unions said in a joint statement that they might announce potential action at a later stage. Gucci did not immediately respond to an emailed request for comment. The unions said that Gucci had previously given them assurances regarding the payment of a welfare bonus for 2025, as set out in an agreement for the 2022-2024 period. They claim that this agreement remains valid in the absence of a new deal. However, Gucci now wants to tie the welfare payment to a broader review of incentive schemes for the 2022-24 period, unions said, rejecting the proposal as unacceptable. "The company (...) has only wasted precious time, making a mockery of the workers who dedicate themselves daily in stores and have been waiting, and continue to wait, for the welfare payment," their statement said. Florence-based Gucci is Kering's star brand, but it has struggled with falling sales in recent years, dragging down the entire French luxury conglomerate which is now pinning its turnaround hopes on new CEO Luca de Meo.
Fashion Network
3 hours ago
- Fashion Network
Gucci staff in Italy take industrial action over welfare payment dispute
Employees at fashion house Gucci in Italy are threatening strike action, accusing the Kering -owned brand of denying them a welfare bonus, Italian trade unions said on Tuesday. Around 1,000 retail and logistics employees across Italy declared a "state of unrest", the unions said, which under Italian labour laws is a form of industrial action that can lead to strikes. The Filcams Cgil, Fisascat Cisl and Uiltucs unions said in a joint statement that they might announce potential action at a later stage. Gucci did not immediately respond to an emailed request for comment. The unions said that Gucci had previously given them assurances regarding the payment of a welfare bonus for 2025, as set out in an agreement for the 2022-2024 period. They claim that this agreement remains valid in the absence of a new deal. However, Gucci now wants to tie the welfare payment to a broader review of incentive schemes for the 2022-24 period, unions said, rejecting the proposal as unacceptable. "The company (...) has only wasted precious time, making a mockery of the workers who dedicate themselves daily in stores and have been waiting, and continue to wait, for the welfare payment," their statement said. Florence-based Gucci is Kering's star brand, but it has struggled with falling sales in recent years, dragging down the entire French luxury conglomerate which is now pinning its turnaround hopes on new CEO Luca de Meo.
Local France
15 hours ago
- Local France
French tax authorities considering phasing out payment by cheque
On Monday, during a meeting with union representatives, French fiscal authorities announced they were "currently considering the future of cheques as a means of payment", French daily Le Monde reported. "There is no set date," the DGFIP ( Direction générale des finances publiques ) specified, but Le Monde reported that discussions on the subject were expected to continue in the autumn. Le Monde also reported that fiscal authorities were considering closing their last cheque processing centre, located in Rennes in western France, in 2027. However, fiscal authorities declined to confirm this report. Advertisement As things stand, cheques remain a valid means of payment for taxes or fines in France, but their usage has dropped by 72 percent in the last 10 years. READ MORE: Explained: How to challenge a French tax bill Additionally, cheques represent the payment method with the highest rate of fraud, making it costly for fiscal authorities to proces them. The decrease in cheque usage dropped 20 percent during the first four months of 2024, Le Monde reported, with only 4.5 percent of payments to the French treasury made via cheque. Overall, French people have begun shifting away from cash and cheques. The country has seen 1,500 ATMs closed in the last year, according to the Banque de France. As of 2024, cheques represented less than three percent of non-cash transactions in France, compared to 37 percent in 2000, according to Le Monde.
