LONDON (Reuters) – Information of Renault Chief Govt Luca de Meo’s determination to depart the French carmaker and sources saying he’s being lined as much as take cost at luxurious items group Kering has created a stir throughout their respective sectors.
This is some preliminary response from analysts.
EQUITA ANALYST PAOLA CARBON
“Though he’s a newcomer to the world of luxurious, Pinault would have chosen De Meo for his change-oriented managerial fashion, for the mix of Italian origins however with expertise already in a French group, for his good relationship with the monetary group.”
UBS ANALYST ZUZANNA PUSZ
“He’s very nicely revered within the monetary group. In accordance with suggestions from our autos colleagues, he’s mentioned to be a marketing- and product-driven govt, which appears relevant to luxurious, regardless of having no prior expertise within the trade.
“The extra cautious suggestions centres across the potential draw back danger to earnings and the related stability sheet danger given Kering’s excessive degree of debt … Moreover, some traders famous concern that (he) has no prior expertise within the luxurious trade, which may very well be seen as essential to handle the group’s lack of top-line development amid an unsupportive sector context.”
CITI ANALYST THOMAS CHAUVET
“Execution of luxurious model turnarounds has turn into extra advanced, prolonged, pricey and much much less public market-friendly, reflecting shopper choice for high manufacturers quite than these in transition.
“We imagine it is untimely to undertake a extra constructive stance given the dearth of visibility on Gucci’s turnaround.”
JP MORGAN ANALYST JOSE ASUMENDI
“Buyers have been this yr centered on the announcement of Renault’s mid-term plan. With the CEO stepping down, this may naturally present a setback.
“When it comes to potential candidates for the CEO place, we see Renault has a robust bench throughout its completely different model managers together with Dacia, but in addition would envision potential exterior candidates.”
BERNSTEIN ANALYST LUCA SOLCA
“Model administration and advertising are his forte, which dovetails with what the posh trade does – for which he appears passionate.
“Time will inform if he manages to hit the bottom operating and be efficient in a distinct trade. De Meo acted decisively at Renault, lowering capability and break-even factors.
“De Meo has a titanic problem forward of him. Critically, traders might want to hear what it’s that De Meo plans to do and digest how quickly his plans will be realised.”
KEPLER CHEUVREUX
“Hiring somebody from exterior the posh sector is perhaps seen as dangerous, however his profile seems nicely suited to guide Kering. We might view positively the appointment of an outsider, and Luca de Meo may very well be the correct profile to drive the turnaround.
