Kering’s shares fell 10% on Friday after the French luxury giant announced a new creative lead for its largest brand, Gucci.
Georgia-born designer Demna Gvasalia, who served as artistic director for a decade at Balenciaga, will begin his new role in July and be responsible for directing Gucci to regain its Mojo during a turbulent time.
The highly anticipated appointment was announced on Thursday, just over a month after Gucci announced Sabato de Sarno’s departure Only two years. Gucci (and so, Kering) is under pressure to improve performance and bring the once-owned biggest-public brand to relate again in the luxury space.
Demna is known in the fashion world that even though the brand’s aesthetics and audiences are different, he will bring his experience to Gucci at Balenciaga, which Kering owns.
“Demna’s contribution to the industry, Balenciaga, and to the success of the group is huge. His creativity is exactly what Gucci needs.” A statement.
While Pinault and Gucci CEO Stefano Cantino are confident that this will work, investors were surprised. The news caused Kering’s market valuation to fall by 4.25 billion euros on Friday.
Large shoe filling
Demna adopts bold, self-righteous designs at Balenciaga’s legacy. Some of his fashion shows reimagined the runway in his unique way, e.g. 2022 Show At Paris Fashion Week, climate change and the Ukrainian war are themed. He is behind several memorable fashion moments, including the $1,800 virus trash bag$1,850 “destroyed” sneakers and $2,000 blue IKEA bag look like.
“Demna has a strong point of view – he is the fashion Wunderkind between 2014 and 2020, a secret seasoning for brands like Gucci,” wrote Luca Solca, a Bernstein SG analyst, in a note. He added that Demna’s “Iconoclast” idea applies to small brands like Balenciaga (estimated to be worth 2 billion euros, while Gucci’s nearly 8 billion euros). Still, they may not be able to work for legendary brands like Gucci.
“In general, we will give this appointment 5/10 because we are not sure if Demna meets the measures for the mission, nor is he currently fit for Gucci,” Solka said.
Gucci’s past creative directors do not have the same bloodline as Demna. De Sarno was in Valentino before joining Gucci, but not as creative director, while his predecessor, Alessandro Michele (currently in Valentino) was hired internally.
To his credit, when he joined Balenciaga in 2015, his estimated value was only a small part of today’s – 390 million euros. He successfully grew it into a major brand in the luxury space, decorated on the red carpet by the likes of Kim Kardashian, Serena Williams and Nicole Kidman.
Demna’s time in Balenciaga also had quite a lot of conflict. Its holiday event for 2022 features kids Posing with the side Teddy Bears filed charges that endorse child abuse and pornography. Balenciaga apologized for the advertisement and sold items for sale. Scandal affects short-term sales of Balenciaga, especially in the United States
Demna will start in Gucci in July, a little late in the spring and summer 2026 display cabinet. This means that the fashion industry can feel that his design for Gucci takes some time.
Gucci has a lot of revival: By far, it is by far the largest brand and crown jewelry. French luxury goods companies’ full-year sales fell 12% In 2024Gucci’s revenue fell 23% to 7.7 billion euros. This is not a good sign for any company, and it certainly is not a good sign for one of the most influential players in the luxury sector amid the wider turmoil in the industry.
With Demna’s appointment, Gucci’s fate can finally see a reversal, or at least that’s what Cantino said.
Cantino tells The Demna is crucial to Gucci at the current stage New York Times.
Killing’s representative did not return immediately wealthMake a request for comment.
This story was originally fortune.com
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