Kering Stock Surges on the Prospect of a New Company CEO
Equity analysts also gave a thumbs up to the prospect.
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'Kering needs change, as performance has continued to deteriorate,' Bernstein's Luca Solca said in a research note, highlighting that the company's share price has fallen 28 percent in 2025 year-to-date and 78 percent from its peak in mid-2021, 'largely driven by shrinking sales at its main brand, Gucci, which has been undergoing a multiyear metamorphosis.'
Citi's Thomas Chauvet trumpeted de Meo's credentials.
'De Meo is perceived to have largely contributed to Renault's turnaround through product newness, technological innovation, [electric vehicle] transition shift, brand elevation and a return to growth and profit,' Chauvet wrote, while cautioning that 'execution of luxury brand turnarounds has become more complex, lengthy, costly and far less public-market-friendly in the past few years.'
He explained that this reflects 'consumer preference for top brands rather than those in transition and significant P&L disruption from greater investment commitment and lower cost flexibility.'
'There is still a considerable amount of work ahead at Gucci and Saint Laurent [80 percent of group EBIT combined, pre-central costs] to rejuvenate both brands and generate a steady stream of revenue and cash flow for the group,' Chauvet wrote.
Solca argued that brand management and marketing are de Meo's forte, 'which dovetails with what the luxury industry does — for which he seems passionate.'
'We were well aware of his affinity for the luxury space, in particular his passion for complicated Swiss watches that we discussed with him at the end of a Renault event in March 2022,' Solca noted. 'It is not hard to imagine how intriguing he found the Kering opportunity.'
Kering has yet to comment on a report late Sunday in French daily Le Figaro that de Meo will succeed François-Henri Pinault, who has helmed the family-controlled group since 2005.
Renault Group had announced earlier Sunday that de Meo decided to 'step down and pursue new challenges outside the automotive sector.' His departure will be effective July 15.
The Italian executive spent five years leading Renault and boasts 30 years in the industry at brands including Fiat, Alfa Romeo, Toyota, Volkswagen and Seat.
Kering has recruited industry outsiders in the past to run its fashion business. What was then Gucci Group famously recruited Robert Polet from Unilever's ice cream and frozen foods division as its president and CEO from 2004 to 2011.
Pinault told shareholders at the company's annual meeting last April that he was unhappy with Kering's results and share price performance. 'I am totally committed to making sure the stock price recovers by restoring financial performance, not in the very short term, but in a sustainable manner in order to generate a stock price that is less volatile and more solid in the months and years to come,' he said.
Kering is banking on its star Balenciaga designer Demna to speed the turnaround at Gucci, where he starts as creative director next month, with his first designs to be unveiled during Milan Fashion Week in September.
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Business Insider
4 hours ago
- Business Insider
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It turns out that, when it comes to breakfast, not all chains are created equally, especially if you're an early riser. In search of the best value and taste, I recently ordered the same affordable combo (two sausages, two pancakes, two eggs) at breakfast chains IHOP and Denny's. They've always seemed quite similar to me, but I found myself shocked when I paid dramatically different prices in each place for near-identical meals. I also learned a frustrating lesson about timing — it really is everything. I started at Denny's, where the pancakes were massive and the sausage links tiny I arrived at a Denny's in Queens, New York, at 7 a.m. on a weekday. I was the only customer aside from a small family. My order was the cheapest meal on the Denny's menu, which proved to be the Everyday Value Slam. It consists of two eggs cooked however you like, bacon or sausage, and a choice of two pancakes, two slices of French toast, or a biscuit and gravy. I chose pancakes, eggs over medium, and sausage. When my food arrived, I was immediately struck by two things: The pancakes were huge, and the sausages were not. Topped with whipped, airy butter, the pancakes were so big that they even had their own plate. They were fluffy and slightly spongy with more of a pleasant bready flavor than the sweetness I expected. I wish they'd come with a bit more butter, though. The sausages were quite small — I could easily have eaten both of them in one generous bite. They were tasty, with a good savory profile, albeit a bit too salty for me. As for the eggs, they were cooked perfectly, with a bit of browning on the whites but with the unbroken yolks still partially runny. I paid under $10 for my meal at Denny's — and that's with a 22% tip The Everyday Value Slam meal at Denny's was priced at $6.99. The tax was $0.62, and I tapped for a 22% tip for a total price of $9.28. 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Fox Sports
a day ago
- Fox Sports
Ferrari's Leclerc stuns the McLarens to take pole for F1's Hungarian Grand Prix
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