Henri Pinault's decision to hire Renault boss Luca de Meo is an audacious but necessary move to address the twin challenge of sagging sales and mounting debt at luxury group Kering, investors and industry players say.

After impressing with his turnaround of French automaker Renault, Luca De Meo is widely expected to be named as the new boss of Gucci owner and luxury powerhouse Kering.

Shares of Kering popped on reports that it has appointed industry outsider Luca de Meo as group CEO. The French fashion house, which owns beleaguered brands Gucci and Saint Laurent, is embarking on the latest phase of its turnaround.