Gucci's Sales Slump: Kering Seeks New Designer to Revive Flagship Brand

Gucci, the iconic Italian luxury fashion house, has been grappling with a persistent sales slump, with revenues dropping by 25% in the third quarter of 2024 compared to the same period last year. The brand's parent company, Kering, has been actively seeking a new creative director to help turn around the struggling luxury goods giant. The search for a new artistic visionary comes as Gucci's sales have been declining for several quarters, raising concerns about the brand's future.

Gucci's creative director, Sabato de Sarno, left the brand in 2024 after less than two years in the job, following the departure of Alessandro Michele in 2023. The brand's sales have been on a downward trajectory since then, with revenues falling by 24% in the fourth quarter of 2023, worse than the 23% decline forecast by analysts. The departure of de Sarno, whose demure style did not align with Gucci's exuberant image, has been cited as a contributing factor to the brand's sales slump.

Kering has been managing a broad overhaul of Gucci's top executive teams, rebuilding the organization to better support the brand's growth and success. The company has appointed Stefano Cantino as the new CEO of Gucci, replacing Marco Bizzarri, who stepped down in January 2025. Cantino joined the company in May 2024 as deputy CEO, and his appointment as CEO signals Kering's commitment to driving Gucci's turnaround strategy.

To address the challenges at Gucci, Kering has implemented several strategic moves. The company has focused on brand marketing and a renewed creative vision, aiming to restore investor confidence by communicating its turnaround strategy. Kering is also working on the overhaul of Gucci's leather goods category, with the introduction of new products late in the quarter. Additionally, the company is enhancing Gucci's communication efficiency, working on a new campaign that promotes both the Blondie handbag and Gucci's heritage.

However, the effectiveness of these strategic moves remains to be seen. Gucci's sales performance has been volatile, and the brand's future depends on the new creative director's ability to reconnect with Gucci's heritage, maintain a balance between innovation and tradition, strengthen communication and marketing efforts, and foster a sense of excitement and anticipation among consumers.

In conclusion, Gucci's sales slump continues to be a concern for Kering, with the brand's revenues declining despite the company's efforts to address the challenges. The appointment of a new CEO and the search for a new creative director are crucial steps in Kering's turnaround strategy for Gucci. The new artistic director will face the challenge of restoring Gucci's brand image and reversing the decline in sales, which will require a deep understanding of the brand's heritage, a commitment to innovation, and a strong connection with consumers.