Kering's managing director Jean-François Palus has started a new job at the helm of Gucci, the Italian star label of the French luxury conglomerate, succeeding Marco Bizzarri, whose departure was announced earlier this year. Appointed by Kering chairman François-Henri Pinault to revive sluggish growth at the brand, Palus will oversee Gucci's turnaround on a temporary basis pending a longer-term replacement for Bizzarri, who had been heading the company for seven years.

On Friday, September 22, Gucci's new artistic director Sabato De Sarno will present his first women's ready-to-wear collection at Milan Fashion Week. Formerly with Prada, Dolce & Gabbana, and Valentino, Naples-born De Sarno succeeds Alessandro Michele. From 2015 to 2022, Michele and Bizzarri formed the dream team leading the reshaping of Gucci, which then struggled to capitalize on a post-pandemic rebound that fuelled surging sales at rivals.

"For this new period, Gucci needs a change of leadership," Pinault said at the end of July when appointing Palus, stressing the importance of being "pragmatic" and "very efficient from day one," even if this meant making radical choices.

A few days before Friday's show, Gucci deleted all the content visible on its Instagram account, followed by 52.3 million people. A spokeswoman with the brand said this was "to mark the opening of a new creative chapter." The account now displays shots of Daria Werbowy, a former Celine brand icon appearing nude for a jewelry collection, and a portrait of a closed De Sarno. "Gucci is the opportunity to fall in love with fashion, ancora (again)," the legend below reads.

This update to the Gucci account drew the ire of many Instagrammers. In comments, some criticized the "nonsense" of a marketing operation, speaking of a "lack of respect" from the brand toward Michele, who, they believe, "saved" it, and "a lack of trust" on the part of Gucci's management. Many called for Michele's "return."

Since his appointment in January, De Sarno has been well aware of how much is expected of him. Kering is sticking to the financial targets set by Bizzarri. In 2018, the man swore he could overtake LVMH's Louis Vuitton and was aiming to achieve annual revenue of €15 billion. Four years on, Vuitton generated sales of over €20 billion. Gucci, with sales of 10.3 billion in 2022, up 15% year-on-year, is showing signs of slackening: Growth was just 1% in the first half of 2023.

"Gucci needs a creative relaunch to become relevant again and generate in-store traffic," said Luca Solca, a sector specialist and senior financial analyst at Bernstein. All the more so since Kering, which also owns brands such as Yves Saint Laurent, Bottega Veneta, and Balenciaga, is heavily dependent on Gucci, whose operating margin stands at 35.3%. It generates €3.7 billion in operating income, two-thirds of Kering's profits.

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