(Repetition without change of a dispatch transmitted Thursday)
by Mimosa Spencer and Elisa Anzolin
MILAN/PARIS, September 22 (Reuters) – Gucci’s new artistic director, Sabato De Sarno, will unveil his first collection for the Italian brand in Milan on Friday, a high-stakes presentation for its parent company, the French luxury group Kering.
De Sarno’s presentation at Milan Fashion Week, one of the industry’s most anticipated shows this year, will serve as an aesthetic refresh for the brand as it seeks to revive sales, but it will also be the first major test of a radical reshuffle at Kering.
Efforts to reinvigorate the brand, which accounts for the majority of Kering’s sales and profits, have led to broad changes in the group’s senior management, including the departure of Marco Bizzarri from his position. functions as Chairman and CEO of Gucci.
Kering has also taken steps to broaden its revenue streams, announcing plans to buy perfume house Creed last June and a 30% stake in Italian brand Valentino in July.
Despite being one of fashion’s biggest success stories in recent years, Kering’s flagship brand has struggled to capitalize on a post-pandemic recovery that has boosted sales of rivals such as Louis Vuitton and Dior, both owned by the French group LVMH.
Kering Deputy CEO Jean-François Palus now takes over as CEO of Gucci as the group seeks a more permanent replacement for CEO Marco Bizzarri, who will step down on September 23, just after De Sarno’s first show Friday.
Bizzarri and Gucci’s previous artistic director, Alessandro Michele, together led the spectacular turnaround of the brand, whose sales doubled between 2015 and 2019 to reach almost 10 billion euros.
However, the brand has lost ground to its rivals, who have invested heavily in marketing during the pandemic.
HIGHER PRICES
In the run-up to De Sarno’s debut, in the role since last May, Gucci focused on timeless fashion and high-priced products – and presented them in specialty boutiques aimed at a very affluent clientele – while strengthening the marketing and the number of collections.
“We believe the quiet progress made on product, pricing and marketing provides a solid foundation for Sabato De Sarno’s new chapter at the helm of the brand,” RBC analysts said, highlighting the steps taken by the company to reduce the brand’s entry-level price offering while adding new products at higher prices.
Analysts say Kering may need to invest more to catch up with rivals like LVMH and Hermes, which could lead to a revision of margin forecasts.
De Sarno will be essential in rekindling the flame of the brand, not only to attract customers to the boutiques, but also to serve as a model to follow during the renovation of the stores.
The designer’s first major advertising campaign for Gucci, released in August, features Daria Werbowy, a model who retired from the stage after dominating the catwalks in the early 2000s wearing only bikini bottoms swimsuit and large gold jewelry “Marina Chain”.
The fall campaign from the brand, which recently removed all posts from its Instagram account, maintains a “recognizable Gucci aesthetic” while not committing “too much in one direction”, said trade publication The Impression.
“It now becomes very important that the new Gucci team scores points, to give investors confidence that we are indeed on the right track,” underlines Luca Solca, analyst at Bernstein. (Report by Mimosa Spencer and Elisa Anzolin; French version Diana Mandiá, edited by Blandine Hénault)
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