PARIS/MILAN, April 25 (Reuters) - Shareholders of French

luxury group Kering approved three new appointments to

the board on Thursday, after the departure of members including

long-time executive Jean-François Palus.

The new board members are Rachel Duan, who worked at General

Electric ( GE ) for 25 years, Dominique D'Hinnin, formerly chief

financial officer for Lagardere and current chairman of

Eutelsat, and former Italian culture minister Giovanna Melandri.

Palus stepped down to focus on his current role running

Gucci, Kering's star label that is undergoing an overhaul aimed

at reigniting sales.

Tidjane Thiam, leader of one of Ivory Coast's main

opposition parties, resigned citing political commitments, while

the mandate of actor Emma Watson expired.

WHY IT'S IMPORTANT

The replacement of the three board members is part of a

sweeping overhaul at the upper levels of Kering as it seeks to

turn around Gucci, which accounts for two-thirds of profit and

has fallen sharply behind rivals in recent years.

CONTEXT

Kering shares have dropped around 17% since the beginning of

the year. On Tuesday it warned it expects first half operating

profit to drop by 40% to 45% after first-quarter sales declined

due to lacklustre demand at Gucci.