Pinault, who is 63, will retain his role as chair. He was handed over the presidency of Artémis, the main holding company behind PPR (renamed Kering in 2013), from his father, François Pinault, in 2003. In 2005, he became CEO of PPR. Despite recent challenges — particularly Gucci’s underperformance compared with peer companies and the stock market woes — his legacy will be the transformation of Kering from a group with an eclectic portfolio of businesses to one of luxury’s top players.

French weekly Challenges first reported on 12 June that the group was considering splitting the CEO and chair roles and that the search for a new CEO was led by recruitment firm Jouve & Associés.

“This announcement [of Luca de Meo as new CEO] is likely to be taken positively near term,” wrote Thomas Chauvet, managing director at Citi, in a note. “However, the execution of luxury brand turnarounds has become more complex, lengthy, costly and far less public-market friendly in the past few years, reflecting consumer preference for top brands rather than those in transition.”

“I would like to thank François-Henri Pinault and the Board of Directors for choosing me to lead Kering into this new phase of development. 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. I am convinced that together we will continue to make Kering an essential player in the luxury industry,” de Meo said.

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