Renault boss de Meo quits with expected switch to Gucci-Owner Kering
LONDON (Reuters) – News about Renault CEO Luca de Mae leaving a French automaker and source has caused a stir in their respective sectors, saying he is lined up to take charge of a luxury group.
Here’s the first response from the analyst:
Equita Analyst Paola Carbon
“He is a newcomer in the world of luxury, but Pineau would have chosen de Meo for his change-oriented management style due to the combination of Italian origins, but he has already had experience in French groups and is due to his good relationship with the financial community.”
UBS Analyst Zuzanna Pusz
“He is highly respected in the financial community. Feedback from his automotive colleagues says he is a marketing and product-driven executive who appears to be applicable to luxury despite his lack of industry experience.
“More prudent feedback focuses on the potential drawback risk to revenue and associated balance sheet risk, taking into account Kering’s high levels of debt… Furthermore, some investors are concerned that (HE) may be viewed as important in addressing the lack of top-line growth within the context of unprevalent sectors.”
City Analyst Thomas Chowbett
“The execution of luxury brand turnarounds has become more complicated, longer, more expensive and public market-friendly, reflecting consumer preferences for top brands rather than brands in transition.
“We believe it’s too early to adopt a more positive stance given Gucci’s lack of vision on the turnaround.”
JP Morgan Analyst Jose Asmendi
“Investors have focused this year on the announcement of Renault’s medium-term plan, which naturally provides a setback when the CEO resigns.
“From the perspective of potential candidates for CEO positions, Renault has a strong bench for various brand managers, including Dacia, but I think you’ll imagine potential external candidates as well.”
Amber Analyst Luka Sorca
“Brand management and marketing are his strengths and I agree with what the luxury industry is doing.
“Time tells us whether he runs and is effective in another industry. De Meo acted decisively at Renault, reducing his abilities and broken points.
“De Meo has a Titanic challenge before him. Critical, investors need to hear what De Meo is going to do and digest how quickly his plans can be realized.”
Kepler Cheuvreux
“It may be considered dangerous to hire someone from outside the luxury sector, but his profile appears to be a good fit for leading curling. We are proactive in looking at the appointment of outsiders and Luka de Meo could be the right profile to drive the turnaround.