At Kering’s annual meeting, Luca de Meo promises fast action and cost cuts

We’ll have to wait a little longer to hear the full turnaround strategy for French luxury group Kering under its new CEO, Luca de Meo. But at the annual general meeting of the parent company of Gucci and Saint Laurent, the former Renault boss — who officially takes office on Monday — delivered a sharp, confident message aimed at reassuring investors.

During the event, François-Henri Pinault, who has led the group founded by his father, François, for the past twenty years, reflected on Kering’s trajectory and current performance. Somewhat visibly moved by this milestone, the executive — who will serve only as chairman of the board starting September 15 — explained the logic behind separating the roles of chairman and CEO, a move welcomed by shareholders.

“I had kept in mind the moment when my father handed over the reins of the company. And it’s about the same time. I started this process in 2023. At the end of 2023, we adapted the group’s organization to facilitate the succession process, culminating in the appointment of Mr. Luca de Meo,” explained François-Henri Pinault.

Kering has faced challenges in recent years, notably due to a high level of debt. To turn things around, it has appointed an operational leader from outside the luxury sector. And while de Meo avoided revealing major strategic details — despite repeated questions from shareholders — he chose his words carefully, clearly aiming to reassure.

The CEO announced he would present a strategic plan in early 2026, while confirming that significant measures would be taken before the end of 2024: “We must continue to reduce our debt and our costs. And to do that, if necessary, we will rationalize, reorganize and reposition some of our brands.” He laid out his approach plainly: “We will be fast, efficient and decisive. We will consolidate the company’s foundations and build an even more integrated, agile luxury group. This will probably involve efforts on the part of management, employees and our suppliers.” Aware of the investor audience, he added that the process would “also require a little confidence from you, the shareholders.” He concluded, “We’re going to bring the group back to where it should be.”

François-Henri Pinault did provide a few updates, particularly regarding Kering’s real estate portfolio. He confirmed that previously announced transactions involving its Milan and New York assets were underway — as had already been the case in Paris through a deal with Ardian. However, when it came to de Meo’s future strategy, he gave nothing away. “Give Luca de Meo time to take up his post,” he repeated each time questions about the roadmap arose. “He starts on Monday. He has all the latitude to make important decisions between now and the end of the year, to define the organization he considers best for the group and its key employees.”

Although some shareholders questioned the terms of de Meo’s compensation during the meeting and raised concerns about the increased age limits for both the chairman (now 80) and the CEO (now 70), a wide majority ultimately approved all resolutions.

On September 15, Luca de Meo will officially begin his mission to get Kering back on track. What comes next will depend on how he chooses to fine-tune the company’s engine.