Will the new Gucci head designer bring about a turnaround?

Will the new Gucci head designer bring about a turnaround?

At the beginning of February, the Swiss luxury group Kering announced its departure from Gucci's chief designer, Sabato De Sarno. A successor has already been found.

Demna Gvasalia will take over as Gucci's new artistic director in July. He comes from Balenciaga, which is also part of the Kering portfolio.

François-Henri Pinault, Chairman & CEO of Kering, explains:

"Demna's contribution to the industry, to Balenciaga, and to the company's success has been enormous. His creative power is exactly what Gucci needs. I thank him for everything he has achieved over the past ten years and look forward to seeing him shape Gucci's new artistic direction."

Gucci desperately needs strength and success. Kering's sales with Gucci fell 12 percent last year compared to 2023 – at Gucci, the decline was over 20 percent. And according to estimates by the bank Morgan Stanley, almost two-thirds of the company's operating profit comes from Gucci.

So there is definitely a need for action.

Since January 1, 2025, the brand has had a new CEO, Stefano Cantino, and the new chief designer will follow in the summer.

Is that enough?

Marcel Speiser Freymond (deputy editor-in-chief of the Swiss Handelszeitung) thinks no, as one can see today in the Handelszeitung could read:

"Gucci appointed Demna Gvasalia as its new chief designer. A fatal mistake. Because Kering's share price is plummeting by more than ten percent today. But above all, because Gvasalia doesn't fit Gucci. Gucci is glamour, glitz, and sex. But Gvasalia stands for pop, streetwear, and anti-establishment. His claim to fame is playing with consumer culture, subverting fashion with everyday things. Like overpriced dresses made of barrier tape with DHL logos. Gvasalia's credo is—pardon me—trolling wealthy people with pop junk masquerading as fashion. Eat the rich, so to speak. If Pinault and his Gucci appointees truly believe Gvasalia will save Gucci from decline, Gucci and Kering need new people at the helm."

Francesca Bellettini, deputy CEO of Kering and responsible for brand development, sees things quite differently, as expected:

"Demna's deep understanding of contemporary culture, coupled with his extensive experience in conceiving visionary projects, has made him one of the most influential and successful creatives of his generation. His appointment as Artistic Director is the perfect catalyst to rekindle Gucci's creative energy."

Things remain exciting at Gucci.