Luxury conglomerate Kering has appointed Luca de Meo, the chief executive officer of French carmaker Renault, as its new chief executive officer in a bid to revive the debt-laden owner of Gucci and other premium brands.

The Italian executive, who has spent his entire career in the automotive industry, will become the first outsider to run the company controlled by the French billionaire Pinault family. He will take up the role on 15 September, replacing François-Henri Pinault, who will remain as chairman.

The appointment sent Kering's shares soaring nearly 12 per cent on Monday, their biggest one-day percentage gain since November 2008, whilst Renault's stock tumbled about 8 per cent following news of de Meo's unexpected departure.

De Meo led the turnaround of Renault after taking charge of the French carmaker about five years ago, returning it to profit and growth despite substantial challenges facing the global auto industry. His success at Renault has made him a sought-after executive, with analysts crediting his brand management expertise and marketing skills.

"His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for to bring a new vision," Pinault said in a statement.

Kering faces significant challenges, with its shares having lost almost 80 per cent of their value since reaching a record in August 2021. The group has struggled to reinvigorate its flagship Gucci brand following the departure of star designer Alessandro Michele in late 2022, and has taken on more than €10 billion in debt.

"De Meo has a titanic challenge ahead of him," said Luca Solca, an analyst at Bernstein. "Critically, investors will need to hear what it is that De Meo plans to do and digest how soon his plans can be realised."

The appointment highlights the scale of the challenge facing Kering, with some investors expressing concern about de Meo's lack of direct luxury industry experience. However, analysts point to successful cross-sector appointments in the luxury industry, such as Robert Polet's move from Unilever to Gucci in 2004.

"I am approaching this new professional challenge with enthusiasm, eagerness, and confidence, inspired by the strength of the Group's brands and the expertise of its people," de Meo said.

The 57-year-old polyglot, who is fluent in five languages, has previously worked at Fiat, Volkswagen and Audi before joining Renault in 2020. His departure represents a significant blow to Renault, where he oversaw the reshaping of the company's alliance with Nissan.

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