Kering has announced the departure of Gucci's creative director Sabato de Sarno, who joined the fashion house in 2023 to succeed Alessandro Michele.
Despite his efforts to revitalise the brand with a more pared-back approach, de Sarno's designs did not resonate with consumers, particularly during a period of broader luxury market challenges, as reported by .
This has led to a significant drop in Gucci's financial performance, with pre-tax profits halving to £4.8m in 2023 from £9m in 2022, and turnover decreasing from £206.3m to £184.6m. Kering's share price has also seen a nearly 40% decline over the past year.
Analysts at RPC, Piral Dadhania and Richard Chamberlain, remarked that de Sarno's exit "does not come as a full surprise" and is seen as "the necessary next step to reignite brand momentum and for Gucci to recover some of the lost market share."
Meanwhile, Jelena Sokolova, senior equity analyst at Morningstar, noted that "Brand momentum improvements typically surface by the fifth or sixth quarter of a creative leadership change, but this hasn’t been the case for Gucci," casting doubt on a potential rebound for the brand in 2025.
Russ Mould, Investment Director at AJ Bell, cautioned that "normally, a change in a strategically important director after a bad patch would be applauded by the market... The fact Kering’s share price fell on the news implies that investors don’t believe there is a simple solution to the company’s problems."
Market analysts have relayed concerns about the feasibility of a swift creative revival, outlining the lengthy process required to not only identify a successor to Sarno but also to allow the new creative strategy to make an impact.
"While this shift presents an opportunity, the process of appointing a new creative leader and seeing tangible results is prolonged," commented Sokolova.
These developments arise as Gucci prepares for its Fall-Winter showcase at Milan Fashion Week, which looms just weeks away.
