Kering’s Shares Plunge After Gucci Appoints Demna Gvasalia as Artistic Director
So, here’s the scoop: Kering, the luxury fashion giant behind brands like Gucci, saw its shares take a nosedive—down about 11%—after announcing that Demna Gvasalia will step in as the new artistic director for Gucci. Talk about a dramatic shake-up!
Who’s Demna Anyway?
You might remember Demna from his successful stint at Balenciaga, which is another Kering brand. He’s known for shaking things up in fashion, especially by blending streetwear aesthetics with high-end luxury. Now, he’s tasked with breathing new life into Gucci, which has been struggling a bit lately with declining sales, especially in the crucial Chinese market.
What Does This Mean for Gucci?
This change comes at a pivotal moment for Gucci, which has seen its revenue take a hit—around a 24% drop year-on-year last quarter! Ouch! Kering’s revenues also took a dip, down about 12%, so you can see why they’re looking for a game-changer. Demna’s not just any hire; he’s the first non-Italian to lead Gucci since Tom Ford, which shows Kering’s commitment to shaking things up.
Industry Reactions
Kering’s chairman, François-Henri Pinault, praised Demna’s creativity, saying it’s exactly what Gucci needs. But analysts at Jefferies cautioned that while the hope is to revitalize Gucci before its September fashion show, we might not see immediate changes. We might have to hang tight until next year to see Demna’s full impact.
What’s Next?
With Demna officially starting in July 2025, there’s a lot of speculation about how his vision will align with Gucci’s direction. Will he ditch the over-the-top styles that have seen better days in favor of something fresher? Only time will tell, but one thing’s for sure: the fashion world will be watching closely.
In the meanwhile, if you want to dive deeper into the changing tides of luxury fashion, check out our article on the latest trends in silent luxury. Let’s see if Kering and Gucci can turn this ship around!
