Core Insights - Kering Group's net profit halved in the first half of the year, prompting new CEO Luca de Meo to make significant leadership changes, including the replacement of Gucci's creative director [1][3][4] - The luxury goods market is experiencing a downturn, with Bain & Company predicting a 2% to 5% decline in market size by 2025, indicating a challenging environment for luxury brands [2] - Gucci has undergone three leadership changes in three years, reflecting ongoing struggles to revitalize the brand and improve performance [3][5] Financial Performance - Kering Group reported a 16% year-on-year decline in revenue to €7.587 billion and a 46% drop in net profit to €474 million in the first half of the year [5][7] - Gucci's revenue fell by 26% to €3 billion in the first half, with a projected annual decline of 23% to €7.7 billion for 2024 [5][6] - The group's other brands also faced challenges, with Saint Laurent's revenue down 11% to €1.288 billion and Bottega Veneta showing minimal growth of 1% to €846 million [5][6] Strategic Decisions - The new CEO's first major decision was to replace Gucci's leadership, signaling a strategic shift aimed at revitalizing the brand and improving overall group competitiveness [1][4] - Kering has postponed the acquisition of the remaining 70% stake in Valentino from 2028 to 2029, a move seen as a prudent financial decision given the group's high debt levels [8] - The group is focusing on debt reduction and cost control as top priorities under the new leadership, with net debt currently at €95 billion [8]

Group 1 - Luca de Meo will step down as CEO of Renault Group effective July 15, seeking new challenges outside the automotive industry [1] - The Renault board has initiated the selection process for a new CEO, with internal candidates Francesca Bellettini and Jean-Marc Duplaix identified, while external candidates may also be considered [1] - De Meo is expected to take over as CEO of Kering, replacing Francois-Henri Pinault, amid speculation about a potential split of the CEO and Chairman roles at Kering [4] Group 2 - Luca de Meo, born in 1967 in Milan, Italy, has a background in automotive management, having worked at Renault, Toyota Europe, Fiat, and Volkswagen, where he led Seat to record sales [5] - Under De Meo's leadership since July 2020, Renault has undergone significant restructuring, including a reduction of global factory capacity and a focus on profitability rather than revenue growth [8][10] - Renault's performance has improved significantly, with 2024 projected sales of 2.26 million vehicles, a revenue increase of 7.4% to €56.2 billion, and a record operating profit of €4.26 billion, reflecting a successful turnaround [10]