PARIS (Reuters) – Kering shares climbed on the Paris Stock Exchange on Wednesday after the luxury group announced management changes at the head of its subsidiary Gucci deemed “significant” by Bernstein analysts.
The action rose 5.14% at 07:56 GMT, leading the CAC 40 and the SFB120, up 0.4% and 0.41% respectively.
Marco Bizzarri, CEO of Gucci since 2015, will leave the group’s management on September 23, a change deemed “notable” by analysts at JPMorgan.
“Wednesday’s announcement will be found helpful by investors and will support Kering sentiment and action in the near term,” the analysts added.
“Marco Bizzari’s departure is not a big surprise, as the subject has long been debated by investors, but it marks an important step in instilling new leadership and a new perspective at Gucci,” explains RBC Europe.
Jean-François Palus, deputy chief executive of Kering, will be appointed CEO of Gucci for a transitional period and will be responsible for strengthening the brand’s teams and operations, according to the company.
“Gucci’s repositioning remains a work in progress and a shift is unlikely to materialize until next year at the earliest,” adds JPMorgan.
Bernstein believes it is important that Gucci’s new team “scores a few goals and wins a few games, to reassure investors that the group is indeed on the right track”.
(Clement Martinot report, written by Corentin Chapron, edited by Kate Entringer)
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