French fashion house shares Kerning On Monday, on more than 9% reports that it has appointed the outsider of the industry Luka de Meo as the CEO of the group. It comes as the owner of Sankki and St. Laurent at the latest stage of its turnaround attempt.

The departure of auto legend de Meo as the CEO of Renault was confirmed on Sunday, the French car manufacturer said in a statement that he was taking “steps to take new challenges outside the automotive sector”. He will remain in office till 15 July.

De Meo’s move for Kairing was first informed by the French newspaper Le Figaro on Sunday. When contacted by CNBC, Kering refused to comment on the report.

Kering stocks were trading at 9.4% at 9.23 am in London at the time of London as investors and analysts made the reports happy. Meanwhile, Renault shares shed 7%.

“Brands are management and marketing [de Meo’s] Bernstein’s analysts wrote in a note on Monday, “What does the luxury industry do with what he does with.

D. Meo is seen as a strong track record, which has worked in the auto sector for more than 30 years ToyotaFiat and VoxwagenItalian is largely credited with a turnaround of Renault during his five years, with shares of over 90% in this period.

The challenges facing the luxury region are still large, as the largest legords with kerning, the shopkeepers are out of love with their star Gucci label. Caring stocks have shed more than 60% in the last two years, which have originated from a series of profit warning and designer changes in Gucci.

The current CEO of Kairing and President François-Henry Pinauult, a family member who controls the group, has organized top jobs for two decades, but actively working on their succession, According For Reuters, citing sources. According to sources, Pinault allegedly intends to divide the roles of the chair and CEO. It was not clear whether it would remain a chair or not.

Thomas Chouvet, Senior Equity Analyst in City, appreciated the change of Renault’s Day Meo, including technological innovation and his hug of brand height. However, he said that the challenges of the possible new role would be important.

He said, “The execution of luxury brand turnarounds has become more complex, tall, expensive, and very few public-market-friendly, which reflects consumer preference for top brands rather than infection and significant P&L dislocation,” he wrote in a note.

He said, “Gucci and St. Laurent still have considerable amounts of work … to rejuvenate both brands and generate a stable stream of revenue and cash flow for the group, which if achieved, may result in many of the important rearnings,” he said.

In April, Kairing Posted Worse than the expectation of a 14% year-to-year decline in the first quarter sales and pointed to the macroeconomic headwind. Sales in Gucci, which is almost of group revenue, has led to loss by falling 25% on a comparable basis.