What's Happening?
Francesca Bellettini has been appointed as the new president and CEO of Gucci, succeeding Stefano Cantino, who is leaving the brand after less than a year in the role. Bellettini, previously Kering's co-deputy CEO for brand development, will lead Gucci as part of Kering's efforts to streamline its organizational structure under the new CEO Luca de Meo. De Meo aims to simplify reporting lines and focus on Gucci, which is a flagship brand for Kering. Bellettini's appointment comes at a time when Gucci's sales have been declining, with a 21% drop last year and a further 25% decrease in the first half of 2025. The company is under pressure to improve its performance, as Gucci accounts for nearly half of Kering's sales and two-thirds of its operating profit.
Why It's Important?
The appointment of Francesca Bellettini as CEO of Gucci is a significant move for Kering, as it seeks to revitalize its flagship brand amid declining sales. Gucci's performance is crucial for Kering's overall financial health, given its substantial contribution to the group's sales and profits. Bellettini's leadership is expected to bring stability and strategic direction to Gucci, leveraging her experience from her successful tenure at Saint Laurent. Her appointment reflects Kering's commitment to addressing the challenges faced by Gucci and restoring its position in the luxury market. The restructuring at Kering, including changes in senior management, indicates a broader strategy to enhance efficiency and focus on key brands.
What's Next?
Further changes in Gucci's senior management are anticipated, including the replacement of the chief financial officer and other key positions. Bellettini will work closely with Gucci's new creative director, Demna, who is set to present his vision for the brand at an upcoming event in Milan. Kering's strategic focus on Gucci will likely involve initiatives to boost sales and improve brand positioning. The company may also explore partnerships and acquisitions to strengthen its portfolio and expand its market presence. Stakeholders will be watching closely to see how Bellettini's leadership impacts Gucci's performance and Kering's overall strategy.
