The divorce was formalized on Tuesday night between Alessandro Michele and Kering. “There are times when paths diverge due to the different perspectives each of us may have,” the Italian designer said in a statement, hailing “an extraordinary journey of more than twenty years in the business.” François-Henri Pinault, CEO of Kering, wishes him “the best for the rest of his creative journey.”
Earlier that day, the US press had announced this exit, evoking divergent views on the strategy. The information had been quite liked by the markets, which had been waiting for it “for two, three years”, explains Arnaud Cadart, manager of Flornoy Ferri. “This is very good news,” even Bernstein analysts greeted, lamenting a purr of the brand for several years. “Gucci suffers from brand fatigue and Alessandro Michele has been doing the same for seven years,” they wrote in a note. Have things been precipitated by recent rumors about a possible return of former Gucci designer Tom Ford to the Kering group? Even so, it is the end of a story of more than twenty years.
The machine ran out of steam.
Alessandro Michele took the reins of Gucci’s creative direction in 2015 and “revolutionized the house”, in the words of Kering. Thereafter, quarters of strong growth followed and the Italian house became the engine of the Kering group. “In three years it exploded”, confirms Arnaud Cadart, who evokes an “exceptional period, during which the economic transformation of the brand was monstrous”. Even today, the house of Gucci continues to progress. Last year, it achieved a current operating profit. of 3,700 million euros, compared to just over 5,000 million euros for the entire Kering group. But the machine has run out of steam and for the last three years, in China and the United States in particular, it has been growing less quickly than the other houses in the group and also less quickly than competitors such as Hermès, Vuitton or Christian Dior. In the third quarter, for example, Gucci’s revenue rose 9%, compared with 22% for LVMH’s fashion and leather goods division.
The page is now turned. It remains to be seen who will take up the torch to shine this brand, in which Kering is very confident. At the moment, the French giant does not give a name. No star designer on the horizon. “The Gucci design studio will continue to assume creative responsibility for the House until a new organization is announced,” he said in a statement.
Source: BFM TV
