The luxury group’s shares rise nearly 9 percent as investors respond positively to de Meo’s early leadership
Since assuming the role of chief executive officer on September 15, Luca de Meo’s leadership at Kering has sparked renewed optimism among investors and a notable rebound in market performance.
On Thursday, Kering’s shares rose 8.7 percent to close at 344.95 euros in Paris, lifting the company’s market capitalization above 42 billion euros. The surge followed stronger-than-expected third-quarter results and marked the best performance among 98 global fashion, luxury, and retail stocks.
While Gucci — Kering’s largest brand, accounting for roughly 39 percent of sales — saw a 14 percent decline in third-quarter revenue, the figure was less severe than analysts’ expectations of a 15 to 16 percent drop and showed improvement from the 25 percent decrease in the previous quarter.
Oliver Chen, analyst at TD Securities, described the results as “encouraging glimmers,” noting that Kering’s “prudent focus” on innovation and tighter supply chain management could drive stabilization through 2026. “Leveraging Demna’s talent and new product focus at Gucci should help drive less negative and eventually positive traffic,” he said.
De Meo, who will unveil a comprehensive corporate strategy next year, has already taken decisive steps to streamline the business. These include delaying the acquisition of the remaining stake in Valentino and finalizing the sale of Kering Beauté to L’Oréal for 4 billion euros, a move expected to strengthen liquidity and balance sheet flexibility.
S&P Capital IQ data places Kering’s total debt at 19.9 million euros, including over 6 billion euros in lease obligations. Since de Meo’s appointment, the company’s stock has climbed 52.9 percent, signaling cautious confidence in his strategic direction despite market uncertainty.
Chen maintained a “hold” rating on Kering, acknowledging that Gucci remains in transition under its new creative leadership but commending the company’s renewed operational discipline.
Kering led the day’s market gains across the fashion sector, followed by Gap Inc. (up 6.2 percent to $23.03), LuxExperience (up 5.6 percent to $9.22), Victoria’s Secret & Co. (up 5.3 percent to $32.74), American Eagle Outfitters (up 5.3 percent to $16.56), and VF Corp. (up 3.9 percent to $15.89).
With early signs of stabilization and renewed investor confidence, all eyes are on de Meo as he prepares to chart Kering’s next chapter in 2026.