What's Happening?
Gucci's chief executive, Stefano Cantino, is reportedly set to leave the company after less than a year in the position. This move is part of a broader restructuring effort by Kering's new CEO, Luca de Meo, who officially begins his role following confirmation by Kering shareholders. Francesca Bellettini, currently Kering's deputy CEO for brand development, is expected to succeed Cantino. The restructuring comes as Kering faces significant financial challenges, with Gucci's sales dropping 21% last year and a further 25% in the first half of 2025. The changes are aimed at reversing the declining performance of Gucci, which remains a critical component of Kering's revenue and profit. Further senior management changes at Gucci are anticipated, including the replacement of the chief financial officer.
Why It's Important?
The leadership changes at Gucci and Kering are significant due to the brand's substantial contribution to Kering's overall financial health. Gucci accounts for nearly half of Kering's sales and two-thirds of its operating profit. The brand's recent financial downturn has put pressure on Kering to implement swift and effective changes. The appointment of Francesca Bellettini, who has a successful track record at Saint Laurent, suggests a strategic move to stabilize and potentially rejuvenate Gucci's market position. The restructuring reflects broader challenges in the luxury fashion industry, where brands must adapt to changing consumer preferences and economic conditions.
What's Next?
As Luca de Meo takes the helm at Kering, further announcements regarding Gucci's leadership and strategic direction are expected. The upcoming presentation by Gucci's new creative director, Demna, will be closely watched for indications of the brand's future creative and market strategies. Additionally, Kering's decision to delay acquiring the remaining shares of Valentino suggests a cautious approach to expansion amidst current financial uncertainties. Stakeholders will be monitoring how these changes impact Gucci's performance and Kering's overall market position.
