(BFM Bourse) – Alessandro Michele, the architect of the relaunch of the Gucci brand would be about to leave, according to press information. A statement is expected on Wednesday.
Leave rather than be ousted. Gucci’s creative director, Alessandro Michelle, is said to be leaving, according to Women’s Wear Daily (WWD), a leading fashion media outlet.
It would be a new blow for Kering. Last week, the number two French luxury had missed the opportunity to get hold of Tom Ford. The takeover of designer Tom Ford’s brand presented itself as a great opportunity for Kering to beef up its portfolio of brands in its core business of fashion and leather goods at a time when Gucci is losing momentum.
Strategic differences between the Italian designer and the brand would be at the origin of this divorce. On condition of anonymity, a source told WWD that Alessandro Michele was asked to make “a drastic change” in his designs to rekindle the flame of the brand. The designer would not have responded favorably to this request.
Another source told WWD that Francois-Henri Pinault, Chairman and CEO of Kering – Gucci’s parent company – “is considering a change of pace for the group’s star brand.”
A statement is expected on Wednesday, adds the WWD. Asked by the media, neither Kering nor Gucci wished to comment on this information.
“A Honeymoon Over”
Alessandro Michele would not want to experience the same fate as Daniel Lee. To everyone’s surprise, François-Henri Pinault gave leave to the artistic director of Bottega Veneta. An inexplicable divorce, especially since the creator’s performance within the brand was excellent. “According to the Anglo-Saxon press, this departure is the result of internal disagreements between the designer and the Bottega Veneta teams,” reports Fashion United.
“Pinault would seek to do the same at Gucci, even though Michele’s last show for the brand in September was one of the highlights of the spring 2023 season,” WWD said.
Alessandro Michele would no longer be in the odor of holiness at Gucci, especially with its chairman and CEO, Marco Bizzarri. Yet it was the latter who came to seek the Italian designer to succeed Frida Giannini and has long been a fervent supporter of the designer. Alessandro Michele’s non-conformist style has indeed influenced many other designers. His arrival at the head of the creation of Gucci contributed to relaunch the Italian label by capturing a younger and more diversified clientele.
“More than a relaunch, it was downright a reinvention that had taken the group’s activity and results to heights very rarely reached in the soft luxury industry. [Mode & Maroquinerie et Vins & Spiritueux, NDLR]”, notes Invest Securities. After his appointment as head of creation at Gucci, the Italian label has posted growth of more than 35% for five consecutive quarters.
However, a source quoted by WWD believes that “the honeymoon with Bizzarri is over, and the relationship is not as strong as before.” The staff of Gucci would therefore attribute to the Italian designer the poor performance of Gucci.
“His departure could have an initially negative impact, given the aura from which he has benefited and a contribution to creation that has gone far beyond his sole involvement in the creation of Gucci to participate in the development of other brands in the Kering group” continues Invest Securites.
For RBC analysts, this change comes at the right time. “After seven years at the helm of Gucci’s creative engine, it may well be time for a change, and a consensus among institutional investors seems to be forming that a new approach is needed to relaunch the brand,” they explain. .
The growth failure of the cash cow
Last month, Kering said its Gucci label continued to underperform the group’s other brands, although organic sales accelerated in the third quarter.
The turnover of the Italian brand amounted to 2.6 billion euros, an increase of 9% on a like-for-like basis, after a 4% increase in the second quarter. “Once again, Gucci’s poor performance overshadows the excellent activity of the other houses in the group,” sighed a Parisian analyst in response to Gucci’s disappointing performance.
“We are not convinced that the (relative) difficulties of the Gucci brand in the recent period can be mainly attributed [à Alessandro Michele, NDLR]partly because the said difficulties stem from a situation specific to the brand, in this case its Chinese exposure (with a focus on a young clientele more sensitive to the effects of the economic situation) but also its broader dependence on the tourist flows”, judge Invest Securities.
On the side of RBC, this change at the head of creation would be good news. “Overall, the notion of a change in creative direction at Gucci is likely to be viewed positively by the market, and in Kering’s share price,” they added. For the moment, Kering reacts little to this press information, the title lost 0.55% around 10:30 am, after a gain of 1% in the first exchanges.
Sabrina Sadgui – ©2022 BFM Bourse
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