Discussion: The State of Kering

Full-year results arrive on the 11th!
It’s going to be fun.
They changed the CEO ironically when last year a shareholder asked them if the then-CEO was just hired to be dismissed if the results weren’t there.

They said that the customers responded well to the new designs of Sabato despite the fact that his work didn’t represent a lot of the products available (there was already a red sign).

They said that they were aiming for en elevation and they went more and more with logos and banality.

I hope the questions will be merciless. Because they saw Pinault parade in Hollywood and with Demna while Gucci is having a bad time.
 
He's gone:
BREAKING: Sabato De Sarno Exits Gucci
The designer had joined the brand in 2023, succeeding Alessandro Michele.

By Luisa Zargani
February 6, 2025, 2:28am

MILAN
– Gucci revealed in a brief statement Thursday morning that it was ending its collaboration with creative director Sabato De Sarno. The fall fashion show in Milan on February 25 will be presented by the Gucci design office.

The new artistic direction will be announced in due time.

“I would like to express my deep gratitude to Sabato for his passion and dedication to Gucci. I sincerely appreciate how he honored Gucci’s craftsmanship and heritage with such commitment,” said Stefano Cantino, Gucci’s chief executive officer.

Francesca Bellettini, Kering deputy CEO in charge of brand development, said: “I sincerely thank Sabato for his loyalty and professionalism. I am proud of the work that has been done to further strengthen Gucci’s fundamentals. Stefano and the new artistic direction will continue to build on this and to guide Gucci towards renewed fashion leadership and sustainable growth.”

De Sarno’s exit comes amid a flurry of creative shifts roiling Europe’s heritage houses, revealed only a few days after Kim Jones announced his resignation at Dior Homme.

Fendi has yet to announce the successor to Jones, who last October stepped down after four years as its artistic director of haute couture, ready-to-wear and fur collections for women.

Thursday’s announcement comes on the eve of Kering revealing its fourth-quarter and full-year results on Feb. 11.

De Sarno’s first show took place during Milan Fashion Week in September 2023. The designer, who was hired by then-president and CEO Marco Bizzarri, was raised in Naples, and began his career at Prada in 2005, moving to Dolce & Gabbana, before joining Valentino in 2009. At the Rome-based brand, he held positions of increasing responsibility, finally being appointed fashion director overseeing both men’s and women’s collections.

De Sarno was expected to unveil Gucci’s cruise 2026 collection with a show in Florence on May 15, paying tribute to the city where the brand was founded in 1921.

De Sarno’s first cruise collection was held in London last May at Tate Modern with guests including Dua Lipa, Demi Moore, Paul Mescal, and Kate and Lila Moss.

Gucci is in the midst of a turnaround under Cantino, who rose to the role in January, succeeding Jean-François Palus.

As the luxury industry has been facing a slowdown in spending, Kering’s marquee brand has been struggling with declining revenues for a few seasons and De Sarno’s collections have been met with mixed reviews. In the third quarter, organic sales at Gucci declined 25 percent, versus analysts’ predictions for a 21 percent drop. In reported terms, revenues fell 26 percent to 1.64 billion euros.

Gucci has been pursuing an elevation strategy, and, as reported, management is pinning its hopes on the introduction of new handbag lines, alongside a collection of ready-to-wear essentials building on De Sarno’s best-performing designs so far, a shorter time to market and a streamlined distribution and offer.
WWD
 
They just sold a bunch of real-estate business, including THE MALL. My second favourite outlet...
 
Gucci is down bad theyre smaller than they were in 2008. Yes that's atrocious. I'm glad they have good margins as - you say - that's what's keeping the lights on.

Its the exact same situation as Maserati and Maserati has been fighting irrelevance for 20 years. Lets hope this Hedi comeback isn't like Maserati's comeback which flopped terribly. Maserati's comeback was an ultra expensive hard to use sportscar that nobody bought because McLaren and Ferrari were competitors and who wouldn't pick a McLaren over a Maserati?

IMO that way doing business is over. They invest in Maserati because it was white hot in 1960 - 1980 and say that eventually they will get back there and they have good margins so it's not throwing money in the ocean.

You just said the same thing about Gucci.
 

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