It seems like the winds of change are blowing fiercely through Gucci, and it’s not just the brand’s ever-evolving collections causing a stir. Sabato De Sarno, the minimalist designer who took the helm as Gucci’s Creative Director in 2023, is out after less than two years in the job. This unexpected departure has left the fashion world buzzing—could this be a sign of deeper trouble at Gucci? And more importantly, what does this mean for Kering, the luxury powerhouse behind the brand?
For those who thought De Sarno’s minimalistic vision might be the rejuvenation Gucci needed after the bold, maximalist era of Alessandro Michele, the reality seems a bit more complicated. His brief tenure has been marked by struggles to revive the iconic brand, which has seen a significant drop in sales, particularly in China, a market where Gucci had once flourished. With revenues slumping by a staggering 25% in the third quarter, Kering’s broader financial health has taken a hit. So, what’s going on?
photo: @Sabato De Sarno for @Gucci / @Kering Luxury Group
Gucci’s Crisis: From Fun to Functional?
To understand the drama unfolding at Gucci, we need to consider the historical context. Under Alessandro Michele, Gucci became synonymous with daring, eclectic designs—a world where prints clashed, quirky silhouettes reigned, and the brand’s celebrity following was as loud as its runway shows. For seven years, Michele’s designs transformed Gucci into one of the most buzzed-about names in fashion. But eventually, the exuberance of it all began to wane, and the luxury label found itself at a crossroads.
Enter Sabato De Sarno, who took over with the promise of a more restrained, minimalist approach. But was it too soon for Gucci to pivot from wild creativity to simplicity? De Sarno’s vision was a stark contrast to Michele’s bold style. While some purists celebrated the return to a more refined aesthetic, others felt that Gucci’s essence was being diluted. Critics say that De Sarno’s minimalism simply didn’t resonate with a younger, trend-driven audience. Was it too much of a shift, too quickly? And now, with the announcement of his exit just days before Kering’s full-year financial report, the tension surrounding Gucci’s direction has only intensified.
Kering: A Luxury Giant in Flux?
The luxury industry is currently grappling with a perfect storm of factors—China’s economic slowdown, inflation-weary shoppers, and an overall shift in consumer behavior. But Kering’s Gucci has felt this turbulence more acutely than many of its competitors. Shares of Kering dropped initially on the news of De Sarno’s departure, though they later recovered—suggesting investors may be holding out hope that Gucci’s woes are more temporary than existential.
But the departure of De Sarno raises some serious questions about Kering’s broader strategy. Kering owns a slew of luxury powerhouses, including Saint Laurent and Bottega Veneta, both of which have been outperforming Gucci of late. If Gucci—a brand that generates nearly half of Kering’s revenue—continues to falter, it could signal a larger problem for the group. Gucci’s weak performance is already dragging down Kering’s stock, and if this pattern continues, the luxury giant could find itself in a tight spot.
Analysts like Carole Madjo from Barclays point out that Gucci’s troubles are compounded by its heavy reliance on middle-class customers in China, who have pulled back on spending amid economic uncertainty. In short, Gucci may be out of touch with its core audience, and its competitors, with their fresh designs and cutting-edge innovation, are quickly outpacing it.
The Cost of Designer Turnover
What’s perhaps most alarming about the De Sarno saga is the pattern of instability at the top. Kering has already seen several high-profile departures in the fashion world in recent years, and this revolving door of creative directors doesn’t bode well for the long-term health of the brands involved. In fact, some industry experts suggest that there has been too much focus on price hikes and not enough emphasis on creating new, innovative products. Stefan Bauknecht from Deutsche Bank has remarked that the luxury sector is undergoing a “state of upheaval,” with a lack of fresh ideas and a too-heavy reliance on increased prices.
As luxury brands scramble to find their footing amidst weak global demand, Kering’s Gucci may find itself fighting an uphill battle against changing consumer preferences and fierce competition. How can Gucci stay relevant when it’s caught between the nostalgia of Michele’s golden years and the minimalist future promised by De Sarno?
What’s Next for Gucci and Kering?
As Gucci searches for its next creative visionary, the key question remains: What direction will the brand take? Will the next designer continue with De Sarno’s minimalistic vision, or will they inject the boldness and theatricality that defined Gucci’s previous golden age under Michele? Perhaps a hybrid approach—an embrace of simplicity with a dash of whimsy—could be the answer, but finding the right creative force to execute that vision will be no small feat.
For Kering, the stakes couldn’t be higher. With Gucci still reeling from disappointing sales and a shifting luxury landscape, the company must act fast to re-establish its flagship brand as a force to be reckoned with. This will require not only the right creative leadership but also a broader rethinking of what luxury means in the post-pandemic world. Whether it’s an Italian maximalist, a Parisian minimalist, or something in between, Gucci’s next move will set the tone for Kering’s future.
