Gucci’s New Design, Management Path
The first collection by creative director Sabato De Sarno on Sept. 22 will kick off a new phase for the brand, which is being further revamped by the major management reshuffle revealed in July.
MILAN — Gucci's first collection by creative director Sabato De Sarno on Sept. 22, after the exit of Alessandro Michele in November, will kick off a new phase for the brand, which is being further revamped by the major management reshuffle revealed in July.
The C-suite change, which sees longtime president and star chief executive officer Marco Bizzarri exit the brand after the spring 2024 show in Milan, leaves Gucci in a transitional phase.
Kering Group managing director Jean-François Palus is succeeding Bizzarri ad interim. François-Henri Pinault, chairman and CEO of Kering, said in July the group will begin the search for a permanent Gucci CEO in September or October, and is open to candidates from outside the luxury sector.
Sources in Milan continue to speculate Francesca Bellettini will eventually be appointed to helm Gucci, although the president and CEO of Yves Saint Laurent was named Kering deputy CEO, in charge of brand development, and will remain in charge of the French label, according to Pinault. Bellettini since her arrival in 2013 has helped propel Saint Laurent to stellar growth. The brand reported sales of 2.4 billion euros in 2021, up from 1.7 billion euros in 2020 — a jump from 400 million euros in 2013.
In addition to Gucci and Saint Laurent, Kering is parent to Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, as well as Kering Eyewear and Kering Beauté. All of the group brands' CEOs will report to Bellettini.
Jean-Marc Duplaix, chief financial officer since 2012, was appointed as Kering deputy CEO as well in charge of operations and finance. In addition, former Chanel global CEO and Golden Goose chair Maureen Chiquet will join the Kering board in September.
Whomever takes over the CEO reins at Gucci faces a major challenge to get the brand — Kering's largest in terms of revenues — back onto a firm growth footing. After a strong run of stellar increases under Bizzarri and Michele, the brand has consistently lagged its peers recently. As reported, Gucci posted a weak performance in the second quarter, with sales of 2.51 billion euros in the three months to June 30, up 1 percent on a like-for-like basis, in line with the first quarter but below analysts' consensus.
Pinault said “the top priority is to restore the momentum of the top line of Gucci,” expressing his confidence the brand will reach its medium-term revenue target of 15 billion euros, versus 10.5 billion euros in 2022.
Among the areas for improvement he identified were product quality and supply chain agility. Gucci has been working on raising the brand's profile in key markets through initiatives that include the launch of Salon, permanent and temporary spaces where high rollers can order bespoke luggage, exotic leather goods, furniture and high jewelry, with prices ranging from about 40,000 euros to 3 million euros.
The first ultra-luxe Salon store opened in Los Angeles in April, complete with fresh-off-the-red-carpet gowns.
Meanwhile, the Gucci Cosmos exhibition will be traveling to London, to be staged at 180 Studios and running from Oct. 11 to Dec. 31.
Gucci Cosmos debuted in Shanghai in April and ran there until June 25, showcasing the brand's most iconic designs from its more than 102-year history.
British artist Es Devlin, who designed the original exhibition, has created a dedicated setup for the London leg with additional elements that pay tribute to the city. Italian fashion critic Maria Luisa Frisa is also returning to curate the London exhibit, adding never-before-seen items from the Gucci Archive, which opened in Florence in July 2021.
Kering also surprised the industry at the end of July by revealing the acquisition of a 30 percent stake in Valentino for 1.7 billion euros in cash as part of a broader strategic partnership with Qatari investment fund Mayhoola.
The French group has an option to buy 100 percent of Valentino's capital by 2028, while Mayhoola could become a shareholder in Kering.