No Quick Fix for Gucci as Investors Cheer Management Overhaul

Shares of Kering, the luxury group that owns Gucci, rose over 6% as investors reacted positively to a major management reshuffle aimed at revitalizing Gucci's sales. The company announced that Gucci's current CEO, Marco Bizzarri, will leave in September, with Jean-Francois Palus taking over as CEO and president during a transitional period. Francesca Bellettini was named Kering's deputy CEO in charge of brand development, and Jean-Marc Duplaix was appointed deputy CEO in charge of operations and finance, as part of the efforts to steer a new course for Gucci, which accounts for half of Kering's sales and nearly two-thirds of its operating profit.