Stock owner Gucci Kering Pop 7% on Renault’s de Meo reports to become the next CEO

Shares of the French House fashion Dry On Monday, he jumped 7% in the report that he had appointed industry outsider Luke de Meo as CEO of the group. This happens when the Beleaguered Brands Gucci and Saint Laurent start on the last phase of their defense efforts.

DE -MEO veteran’s departure as CEO of Renault was confirmed on Sunday, and a French car said in a statement he was leaving for new problems outside the automotive sector. “

The relocation of de meo to Kering for the first time reported the French newspaper Le Figaro on Sunday. Caring refused to comment on the reports when CNBC appealed.

Kering shares traded 7.2% to 8:34 in London time when investors and analysts have encouraged reports. Meanwhile, Renault divides 7%.

“Brands management and marketing are (De Meo’s) Forte, which does what the luxurious industry does,” Bernstein analysts wrote on Monday.

De Meo is considered as strong results, working at a car dealership for more than 30 years, including in ToyotaFiat and Volkswagen. The Italians are heavily attributed to Renault turn for five years at the helm, with the stock increased by 90% during this period.

The problems facing the luxurious sector are still large, and Kering among the biggest backlights when buyers fell in love with their star label Gucci. Over the past two years, Kering Sali has been salted over 60%caused by a number of profits and design changes in Gucci.

Current CEO and Chairman of King François Henry Pino, a family member who has been in charge of the main job for two decades, but actively working on its continuity, In the hall For Reuters, citing sources. Pinault intends to share the roles of the chairman and the CEO, sources reported. It was unclear whether he would remain a chair.

Thomas Shavet, Senior Citi Analyst, praised the turn of De Meo Renault, including his embrace of technological innovation and the elevation of the brand. However, he noted that the problems of the future new role would be significant.

“The implementation of the turning points of luxury brands has become more complex, long, expensive and much less convenient for the public market, which reflects consumers’ advantage for leading brands, not for transition and significant violations of P&L from great investment commitments,” he wrote in the note.

“There is a significant amount of work in Gucci and Saint Laurent … To rejuvenate both brands and create a permanent stream of income and cash flows for a group that, if achieved, can lead to a significant multiple rating,” he added.