Kering Shareholders to Vote on Luca de Meo’s appointment Amidst Slumping Profits
PARIS – September 9, 2025 – Kering shareholders are set to vote on the appointment of Luca de Meo as the group’s new managing director, a move intended to revitalize the luxury conglomerate facing significant financial headwinds. de meo is slated to take office on September 15th.
The appointment comes as Kering grapples with a sharp decline in profits and sales, especially at its flagship brand Gucci. Shareholders will also be asked to approve raising the age limits for the president from 65 to 80 years and the director general from 65 to 70 years. De Meo’s arrival is seen as a critical step in addressing these challenges and steering Kering back towards growth.
De Meo’s compensation package is valued at 20 million euros, to be paid 75% in cash and 25% in Kering shares. He inherits a company that reported a 46% drop in net profit for the first half of 2025, reaching 474 million euros, alongside a 16% decrease in turnover to 7.6 billion euros.
Gucci, which accounts for 44% of Kering’s turnover and nearly two-thirds of its operational profitability, has experienced a particularly steep decline, with annual sales falling from 10.5 billion euros in 2022 to 7.65 billion euros in 2024. The first half of 2025 saw Gucci’s turnover collapse by 27% to 1.46 billion euros. This downturn prompted the replacement of Sabato de Sarno with Demna, formerly of Balenciaga, in March.
Beyond gucci, other Kering brands are also struggling. Yves Saint Laurent sales fell 11% in the first half, while the “other houses” category, including balenciaga, saw a 15% decline. Only Bottega Veneta and Kering Eyewear showed modest growth, with sales increases of 1% and 2% respectively.
Adding to the pressure, Kering’s financial debt has risen substantially, from near zero in 2021 to 9.5 billion euros in the first half of 2025, largely due to acquisitions like Creed perfume (30%) and Valentino, as well as real estate investments. De Meo will be tasked with addressing this debt alongside the broader turnaround effort.
