Sabato de Sarno’s departure illustrates persistent turbulence at Kering

The abrupt announcement by Gucci on Thursday that Sabato de Sarno would withdraw from his post as a creative director was an abrupt end of his short term at the head of the Italian fashion house. In a narrow press release – Kering – the luxury group, which belongs to the Gucci – did not make a statement on de Sarno. Instead, an optimistic tone regarding the future of the brand was struck, with the managers expressed their anticipation for the “next chapter” in the development of Gucci.

The departure of de Sarno, who only came to Gucci in January 2023, reflects the growing challenges with which Gucci, once the crown jewel in the Kering portfolio, was confronted. De Sarno was discontinued by the then CEO Marco Bizzarri, who also resigned under growing pressure in mid -2023. His role was largely considered a temporary solution. His task: Gucci after several quarters of stagnating sales and a declining announcement: to get the internal enthusiasm back on the growth course. However, his term was only short -lived – it ended before the usual three -year contract – and underlines the difficulties associated with the revival of a brand of the size and cultural significance.

Trend reversal

De Sarno’s term of office was challenged from the start. Delivery delays meant that his debut collection was slowly entering the shops, which prevented an immediate influence on the sales figures. In addition, the interior design of the Gucci individual trade surfaces-which was still strongly characterized by the maximum aesthetics of its predecessor Alessandro Michele-collided with de Sarno’s more minimalist and more classic approach. Sading conversions, often a key element in the repositioning of the brand image, were not carried out, probably due to budget considerations and concerns about declining sales.

Gucci’s new CEO, Stefano Cantino, who took up his office in January, has inherited a brand in change, but was probably also hired to manage a designer: interior change. The question that continues to arise is whether a complete revision – both creatively and operatively – will be necessary to re -inforcing the interest of the customers and restoring Guccis growth course. Since Gucci makes up almost 60 percent of Kering’s profit, a lot is at stake for Cantino and Keringing CEO François-Henri Pinault.

A hard fight

De Sarno’s appointment was always a risky undertaking. Little known outside of industry circles, his previous position as a design director at Valentino did not bring him the awareness and creative influence, which are associated with many other creative director: inside of luxury brands. Nevertheless, his minimalist interpretation of the Gucci collections was well received by some customers: in the inside, especially by accessories such as ox blood red leather goods and revised handbag silhouettes. However, this was not enough to increase the total sales that continued to decline.

Gucci’s turnover fell by 14 percent in the third quarter of 2024 compared to the previous year, and the parent company is increasingly under pressure to reverse this trend. Kering’s upcoming telephone conference on the business results Next week will be followed carefully, since analyst: Inside, the lack of clear artistic direction for Gucci, the most important turnover carrier, will be questioned.

A well -known pattern

Gucci’s change in the creative area has fueled speculation about who could take the reins next. The rumor mill of the fashion industry is already bubbling with reports that Maria Grazia Chiuri, creative director at Dior, had had discussions with Kering. Others have recommended Hedi Slimane as potential candidates – currently freely after his work at Celine. It remains to be seen whether Kering will take the more careful way to hire a well-known design personality or choose an unknown talent.

Francesca Bellettini, deputy CEO von Kering and responsible for brand development, commented diplomatically, but vague and thanked de Sarno for his “loyalty and professionalism”. There were no evidence of the circumstances of his departure or the schedule for the appointment of a successor.

In addition to the speculation, insiders reported that Gucci had put a memo into circulation internally, in which a new designer was announced, who was supposed to work under de Sarno – only to make his release public within 24 hours . It is speculated that de Sarno may have knew his fate, but was not ready to maintain the appearance of normal business operations during the Milan fashion week.

High use for kering

For Pinault, who recently geared Kering’s strategy to improve profitability and expansion into ultra-luxury categories, the performance of Gucci is crucial. In contrast to competitors such as Louis Vuitton from LVMH and Hermès, the declining dynamic of the brand, who have successfully adapted to the changed taste of consumers in a world after the pandemic.

The trust of investors in Kering has already been shaken by Gucci’s difficulties. The company’s shares have developed worse in the past two years than that of the competition, and analyst: Inside, more resolutely demands measures to revive the fortunes of the house. Any further delay in the appointment of a new creative director or a new creative director could cause additional uncertainty.

The quarterly results of the next week will provide information – not only about the immediate future of Gucci, but also about Kering’s ability to claim his position in an increasingly competitive luxury market. For the time being, everything was set to zero at Gucci, and the search for new creative visionary: inside is already on the go. The only certainty is that the next chapter in Gucci’s story will be carefully examined both by the fashion world and the investors.