Group 1 - Kering Group has appointed Luca de Meo, a well-regarded executive from the automotive industry, as the new CEO to revitalize struggling brands like Gucci [1][2][4] - Kering's stock price surged by 10% following the announcement of de Meo's appointment [2] - The current chairman and CEO, François-Henri Pinault, has led the company for 20 years and is transitioning leadership roles [3][22] Group 2 - Kering has underperformed compared to competitors like LVMH and Hermès since 2021, primarily due to Gucci's poor performance [5] - Gucci accounts for approximately half of Kering's sales and two-thirds of its profits, with a significant revenue decline of 23% to €7.65 billion in the 2024 fiscal year [6][18] - Kering's market value has dropped from nearly €100 billion in 2021 to just above €21 billion, recovering slightly to over €23 billion recently [7] Group 3 - De Meo has a successful track record, having turned around Renault's financial performance, increasing operating profit margins from 2.8% in 2021 to a projected 7.5% in 2024 [9] - Under de Meo's leadership, Renault's stock price rose by 90% over five years [9] Group 4 - Gucci's revenue has fluctuated significantly, with a 6% decline in 2023 and a projected 23% drop in 2024, while profitability has decreased nearly 60% from its peak [15][18] - Competitors like LVMH and Hermès have maintained stable or moderate growth, while Gucci's profit margin has fallen to just above 21% [17] Group 5 - Kering's first-quarter 2025 results showed a 14% decline in sales to €3.88 billion, with Gucci's revenue down 25% year-over-year [20] - The overall performance across regions is weak, with declines of 13% in Western Europe and North America, and 25% in the Asia-Pacific region [21][36] Group 6 - The luxury goods sector is experiencing a downturn, with Gucci facing challenges earlier than its competitors, and major brands like Chanel also reporting declines [34] - The Chinese market, a key area for Gucci, saw a 27% drop in revenue in the first quarter of 2025, indicating ongoing struggles [36]