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Fashion United
21 hours ago
- Business
- Fashion United
Luxury group Kering continues to tumble in first half, profit and sales plunge
Kering group, still weighed down by the difficulties of its flagship brand Gucci, announced on Tuesday a 46 percent plunge in its half-year net profit. This fell below 500 million euros. The new chief executive officer, Luca de Meo, is due to take office in mid-September to attempt to turn things around. Kering's turnover, owner of Yves Saint Laurent, Bottega Veneta and Balenciaga, fell by 16 percent over the six months to 7.6 billion euros. 'While the published results remain well below our potential, we are convinced that the efforts made over the past two years have laid solid foundations for the next stages of Kering's development,' said chairman and CEO François-Henri Pinault, quoted in the press release. The culmination of the reorganisation launched months ago to redress the brand and the group, Kering announced in mid-June the arrival of Luca de Meo. De Meo, former boss of car manufacturer Renault, will take on a newly created position of chief executive officer alongside Pinault. Pinault will retain the sole chairmanship. De Meo will take up his duties on 15 September. The group continues to face 'an economic and geopolitical environment that remains uncertain', the statement acknowledged. However, it displays its 'desire to sustainably pursue a path of profitable growth'. Meanwhile, profitability continued to suffer in the first half. The current operating margin fell to 12.8 percent, compared to 17.5 percent a year earlier in the same period. Kering group's main problem is that it is failing to revive sales of Gucci, its flagship Italian brand. Gucci alone accounts for nearly 50 percent of the group's sales and two-thirds of its operating profitability. These sales fell by 26 percent over the six months to three billion euros, compared to more than four billion euros a year earlier. In the second quarter, Gucci saw its sales fall by 27 percent to 1.46 billion euros. The group's other brands are not faring any better. Yves Saint Laurent's sales fell by 11 percent to 1.29 billion euros and those of 'other houses', a section that includes Balenciaga, by 15 percent to 1.46 billion euros. Only the woven handbag brand Bottega Veneta is holding its own, with a very slight one percent increase in sales to 846 million euros, as well as Kering Eyewear, the eyewear and beauty branch (plus two percent to one billion euros). Bottega Veneta handbag, SS25. Credits: ©Launchmetrics/spotlight This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Time of India
17-07-2025
- Automotive
- Time of India
Renault makes British executive Duncan Minto interim CEO
Paris, French carmaker Renault on Tuesday made its British chief financial officer Duncan Minto its interim CEO as it works to find a successor to Luca de Meo, who stepped down to run luxury group Kering. Minto, born in 1975 and educated in Scotland, has worked his entire career in Renault and was made CFO in March. He told a press conference that an appointment of a successor to de Meo "should not take very long". He also said the company was lowering its annual forecasts this year because of a "deterioration of trends in the automobile sector". Renault was revising its operating margin to around 6.5 percent of turnover, down from a minimum 7.0 percent given previously. Renault is partnered with struggling Japanese automaker Nissan, which it rescued in 1999. The companies did not merge but own shares in the other in what has proved a rocky alliance. Renault early this month said it was booking a 9.5-billion-euro ($11.2-billion) loss, while Nissan posted a net loss of $4.5 billion for the financial year to March. De Meo, who ran for Renault for the last five years, announced his departure last month, with his exit becoming effective on Tuesday. He is to become the new chief executive of French luxury group Kering, the owner of Gucci, Yves Saint-Laurent, Balenciaga and other premium brands. De Meo is expected to take up the reins at Kering from September 15, subject to board and shareholder approval. Kering's current chief executive is Francois-Henri Pinault, son of the group's billionaire founder Francois Pinault. Francois-Henri Pinault is shaking up Kering's management and would stay on as chairman.
LeMonde
15-07-2025
- Automotive
- LeMonde
Renault names its British CFO interim CEO
French carmaker Renault made its British chief financial officer Duncan Minto its interim CEO on Tuesday, July 15, as it works to find a successor to Luca de Meo, who stepped down to run the luxury group Kering. Minto, born in 1975 and educated in Scotland, has worked his entire career in Renault and was made CFO in March. He told a press conference that an appointment of a successor to de Meo "should not take very long." He also said the company was lowering its annual forecasts this year because of a "deterioration of trends in the automobile sector." Renault was revising its operating margin to around 6.5% of turnover, down from a minimum 7.0% given previously. Renault is partnered with struggling Japanese automaker Nissan, which it rescued in 1999. The companies did not merge but own shares in the other, in what has proved a rocky alliance. Renault early this month said it was booking a €9.5 billion ($11.2-billion) loss, while Nissan posted a net loss of $4.5 billion for the financial year to March. De Meo moving on to Kering De Meo, who ran Renault for the last five years, announced his departure last month, with his exit becoming effective on Tuesday. He is set to become the new chief executive of French luxury group Kering, the owner of Gucci, Yves Saint-Laurent, Balenciaga and other premium brands. De Meo is expected to take up the reins at Kering from September 15, subject to board and shareholder approval. Kering's current chief executive is Francois-Henri Pinault, son of the group's billionaire founder Francois Pinault. Francois-Henri Pinault is shaking up Kering's management and would stay on as chairman.
Canada News.Net
20-06-2025
- Business
- Canada News.Net
Gucci slump, Valentino risks await Renault's de Meo at Kering
PARIS, France: Luxury group Kering's decision to tap Luca de Meo as its next chief is being seen as a daring but necessary attempt to halt a dramatic decline in fortunes at Gucci, the once high-flying French conglomerate. Sources said Francois-Henri Pinault, who has led the group since 2005, is expected to hand over operational reins to the current Renault CEO. The move comes after years of underperformance at Kering's flagship brand, Gucci, and ballooning debt from aggressive acquisitions. De Meo's track record in reviving Renault has impressed investors, but many acknowledge that restoring Kering's shine — especially Gucci's — will be an even more formidable challenge. "It's a bold move ... We now have a CEO (de Meo) who is a great professional," said Ariane Hayate, European equity fund manager at Edmond de Rothschild. "There's now a real willingness by Francois-Henri Pinault to take a step back after years of underperformance." Kering's shares surged more than 12 percent this week, and they are on track for their most significant daily gain since 2008. Analysts and investors say the appointment hints at deeper troubles across Kering's portfolio — beyond Gucci — and signals the company's intent to take drastic action. One large European investor said the group's problems "are bigger than perceived from the outside." De Meo is likely to accelerate Kering's cost-cutting plans, which include store closures, layoffs, and real estate sales. These plans aim to reduce its net debt of 10 billion euros (US$11.6 billion). Another pressing task will be steering the group's acquisition of the remaining 70 percent of Valentino. Kering bought 30 percent of the brand in 2023 for $1.9 billion, with an option to purchase the rest in 2028 — or potentially as soon as May 2025, depending on deal clauses. "Coming from outside the industry, de Meo's learning curve is going to be super steep, but at the negotiating table, he could do well," said one person familiar with Valentino. De Meo's biggest test, however, remains Gucci, which has faltered since designer Alessandro Michele's exit in 2022. Investor hopes were dented further with the appointment of Balenciaga's Demna as creative director. Despite his lack of luxury sector experience, de Meo joins a list of high-profile cross-industry leaders who have successfully steered fashion giants. Robert Polet, Leena Nair, Benedetto Vigna, and Sergio Marchionne all made similar jumps — and thrived.
Miami Herald
18-06-2025
- Business
- Miami Herald
Gucci, Yves Saint Laurent owner throws out the fashion rulebook
Things are getting wild in the luxury industry. Quiet boardrooms are turning into war rooms. Legacy houses that coasted on prestige and heritage are now clawing for relevance. Once bulletproof brands are bleeding market share, losing cultural heat, and watching TikTok drive trends they can't keep up with. At the center of the storm? Kering. Related: Gucci, YSL owner pushes back on tariff threats The French luxury giant, home to Gucci, Yves Saint Laurent, Balenciaga, Bottega Veneta, and others, is unraveling. After riding high for years, Kering is now facing a full-blown identity crisis. Its crown jewel, Gucci, has lost momentum. Gen Z isn't buying in. Sales are slumping. Analysts are doubting. Investors are bailing. And leadership? Wobbling. In the past two years, Kering has lost more than 60% of its market value. Its debt has ballooned past $11.5 billion. Gucci (once its money-printing machine) is sputtering. And now, the company just made a move no one expected - one that has nothing to do with handbags and everything to do with horsepower. Kering confirmed on Monday that François-Henri Pinault will step down as CEO after nearly 20 years and hand over leadership to current Renault CEO Luca de Meo. De Meo, who officially leaves Renault on July 15, will take over as Kering CEO on September 15, pending shareholder approval. While best known as a "car guy" with stints leading Fiat, SEAT, Volkswagen, and most recently Renault, de Meo has a strong reputation for brand building and strategic turnarounds. Related: Why now may be the best time to buy a luxury watch He's credited with the revival of the Fiat 500 and the Renault 5, and is known for his deep understanding of marketing and design. In a statement, Pinault said, "His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for." The message is clear: Kering doesn't want just another luxury exec. It wants a visionary who can rewrite the playbook. It sounds wild. But is it really? Fashion, like auto, is about design, scale, and timing. And Kering needs a Its traditional playbook just isn't working. Gucci's creative shifts haven't landed. Saint Laurent is steady, but not enough to carry the weight. Balenciaga's controversy fatigue lingers. Meanwhile, rival LVMH is lapping Kering in nearly every category. Enter de Meo. He's not a fashion insider, but that might be the point. Kering doesn't need another luxury lifer - it needs someone willing to make hard decisions and rip off Band-Aids. More fashion: Dior suffers major loss as trailblazing designer exitsThe Birkin and LL Bean mashup you didn't know you neededPopular retailer flags major fashion trend that could save luxury fashion And with his outsider status, de Meo could have the freedom to cut deeper, move faster, and ask the questions insiders won't. De Meo is known for being strategic, brand-driven, and deeply interested in design - he reportedly has an affinity for Swiss watches and the luxury space. That gives him something rare: operational rigor and taste. If this shakeup works, it won't just reshape Kering. It could mark a new era of luxury leadership, where cultural relevance depends less on who you know in fashion, and more on whether you can actually build a brand people care about. For fans of Gucci, Yves Saint Laurent, and the future of fashion, this could be the plot twist that changes everything. Related: How an airplane vomit bag led to the iconic Hermès Birkin The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
