The sudden departure from Gucci of Alessandro Michele, the brilliant designer who It was favorite of Harry Styles and Lady Gaga, turn up the pressure on Kering’s owner is facing slowing revenue growth in Italian fashion house.
News of Creative director Kering’s exit after seven years comes as Kering seeks to revitalize the label, something that has been weighed for two-thirds of The parent Company profits last year and in the future of profitable holiday shopping season.
Sources told Reuters that tensions were high between the designer and the company’s management.
announcing his departure on Wednesday, Michelle noted, “they both have different points of view one of us He may have.”
Kering President and CEO François-Henri Pinault hailed the designer’s tenure as a “wonderful moment” in Gucci history. He did not name his successor.
Without an obvious replacement, Michelle’s exit, analysts said, created a void that the label needed to fill fast.
“This raises some questions in our view on Implementation and development of trade mark in months ahead, leaving more uncertainty about the timing of acceleration of JPMorgan brand momentum analyst said Chiara Battistini in a research note on Thursday.
Michelle’s departure ismore From just director of one of The most famous designers of The last Analysts at Jefferies said, who He indicated the possibility of a “deeper rethinking”. of Kering’s label.
“The next step is necessarily more complicated They are now added.
Involved in keyring, worth more more than 66 billion euros (over $68.7 billion), lagging behind competitors in Last few years. They lost a quarter of That’s worth year.
Michelle, 49, has reinvigorated the brand with His eccentric and fluid style is popular with both genders with Younger shoppers.
Early hits were loafers lined with fur and trimmed with The label horse’s signature bit, which was brought in over $1,000 and Dionysus’ handbag, with chain strap f double Tiger Heads, starting at about $900 for Small sizes.
After being upgraded from accessory design in In 2015 he helped boost profits, which had quadrupled by 2019 as revenue rose to nearly 10 billion euros from less than 4 billion.
In the last years, growth Slow down while competitors like Dior and Louis Vuitton, owned by rival luxury brands group LVMH, go ahead.
third-quarter Sales in fashion and leather goods LVMH division It rose 22% while Gucci grew 9%, less than market which she expected, and some analysts attributed it to a fading appetite for designer patterns.
They have questioned midterm targeting for Annual sales of 15 billion euros, set in Jun.
brand has also suffered from the COVID-19 lockdowns in China where it has a large scale store network And the higher exposure comparison with other heavyweights.
China generates about 35% of Gucci’s annual sales, Barclays estimates, up 27% for LVMH fashion and leather goods division and 26% for Hermes.
The time is not on Distinctive label side.
While making such a drastic change is positive, “it may take approx year to see the results of any aesthetic shift design and production lead times.
Industry observers say there is a significant percentage pool of Potential creative directors, starting with big-Designers name for the relative unknown who It can be used from within like Michelle was.
a new director could give The entire brand new direction with The “tabula rasa” approach, as Demna Gvasalia did at Balenciaga, or build on ex designer direction like Anthony Vaccarello who Serge Carrera said that behind Hedi Slimane in Saint Laurent, head of Emerging Brands of the French Fashion Federation FHCM.
“you may also Stick with the current situation for mantra and take a break for a year or so team can continue to design collections, just Such as men’s team At Louis Vuitton, it follows death of Designed by Virgil Abloh last year.
But given the power of Michelle’s aesthetic and brand identity, change in It could mean positioning more of “More revolution than evolution,” said JPMorgan’s Battistini.
“this is, in our viewcan mean a period of Relative disorder, both operationally And the financiallyThis can lead to a re-evaluation situation story of keyring on Catch for Battistini said.