Luxury fashion house Gucci is facing another leadership shakeup as Sabato De Sarno departs his role as creative director after less than two years, parent company Kering (PRTP.PA) announced Thursday. The move marks a pivotal shift as Gucci attempts to regain its competitive edge amid declining sales and shifting consumer preferences.
De Sarno, a 42-year-old Italian designer known for his minimalist aesthetic, was appointed in 2023 to replace the flamboyant and highly influential Alessandro Michele, whose bold, maximalist designs defined the brand for seven years. His sudden departure comes just days before Kering is set to release its full-year earnings report.
The announcement initially triggered a 3% drop in Kering’s stock, though shares later rebounded, closing 3% higher as positive results from rival luxury group Tapestry (TPR.N) lifted the sector.
Gucci’s Struggles and Industry Challenges
De Sarno’s exit is the first major leadership decision under Gucci CEO Stefano Cantino, who took charge last year as the brand struggles to regain momentum in the luxury market. Once a powerhouse for Kering, Gucci saw third-quarter revenues plummet by 25%, contributing significantly to the group’s overall downturn. Over the past year, Kering’s stock value has fallen by nearly a third, raising concerns over the brand’s long-term strategy.
“Gucci is facing an uphill battle,” said Carole Madjo, analyst at Barclays. “The brand’s heavy reliance on the Chinese market, middle-class consumers, and a fading appeal in the luxury segment make its recovery particularly challenging.”
The fashion industry has witnessed a wave of creative leadership changes amid sluggish global demand, particularly in China, and a shift in consumer spending. Stefan Bauknecht, luxury sector specialist at Deutsche Bank’s DWS, noted that many brands have over-relied on price hikes in recent years, with limited focus on innovation and fresh product lines.
Who Will Lead Gucci Next?
With De Sarno’s departure, the search is on for his successor—one of the most coveted creative roles in the industry. Possible candidates include:
- Pierpaolo Piccioli, who left Valentino last year,
- John Galliano, formerly of Maison Margiela,
- Hedi Slimane, the renowned former designer for Dior Homme and Yves Saint Laurent.
For now, Gucci’s upcoming fall-winter show in Milan will be overseen by the brand’s internal design team, Kering confirmed.
As the luxury sector navigates uncertain times, Gucci’s next creative vision will be crucial in determining whether the brand can recapture its status as a trendsetter in high fashion.