Shares of Gucci-owner Kering pop 10% on reports Renault’s de Meo to be next CEO

French fashion house shares Kahar It exploded more than 10% on Monday, and reported that he appointed the industrial foreign Luca de Meo as a Group CEO. Gucci and Saint Laurent, the owner of the besieged brands, are at the last stage of their return effort.

Auto senior de Meo’s separation as Renault CEO was approved on Sunday, and the French car manufacturer said that he took steps to “undertake new challenges outside the automotive sector”. He will be in office until July 15th.

The moving of De Meo to Kering was first reported by the French newspaper Le Figaro on Sunday. Kering refused to comment on reports when he contacted CNBC.

While investors and analysts cheered reports, Kering shares were traded on time of London with an increase of 10.3%. Meanwhile, Renault shares fell by 7%.

“Brand Management and Marketing [de Meo’s] Bernstein analysts wrote in a note on Monday. “

De Meo is seen as having a strong history working in the automobile sector for more than 30 years, ToyotaFiat and Volkswagen. The Italians are largely loan with the return of Renault for five years in the world, with a share of more than 90% in this period.

The challenges faced by the luxury industry still seem great, and those who shop between the largest Laggards are falling from love with the label of Yıldız Gucci. Kering shares have fell by more than 60% in the last two years and set out with a series of profit warnings and designer changes in Gucci.

François-Henri Pinault, the current CEO and president of Kering, has performed the best works for twenty years, but actively working on his consecutive. in accordance with Referring to Reuters. According to sources, Pinault is reported to be planning to divide the roles of President and CEO. It was not clear whether the president would remain.

Thomas Chauvet, Citi’s senior self -equity analyst, praised Renault’s return, including Meo’s embracing technological innovations and the height of the brand. However, the difficulties of the possible new role will be important, he said.

“The execution of luxury brand returns has become more complex, long, costly and much less public market friendly, reflecting the consumer preference for the best brands rather than those in the transition, and more important P & l deterioration from more investment commitments.”

“There is still a significant work in Gucci and Saint Laurent.

In April, Kering declined by 14% annually in the first quarter sales and pointed to the next macroeconomic winds. Sales, which have almost group revenues in Gucci, caused losses, fell by 25% on a comparable basis.