Can Gucci’s new CEO Stefano Cantino spark a revival?

What happened Gucci has named Stefano Cantino as its new chief executive, taking the reins from interim CEO Jean-Francois Palus effective January 1, 2025. The Italian executive, who joined Gucci in May 2024 as deputy CEO, brings a wealth of experience from senior roles at Prada and Louis Vuitton — a signal that Gucci’s parent company Kering is doubling down on revitalizing its flagship brand amid a challenging luxury landscape. Cantino rose through the ranks at Prada over 20 years, working closely with Chairman Patrizio Bertelli to navigate the company’s global expansion, IPO, and turnaround. He later joined Louis Vuitton in 2018, where he oversaw communications and image during a period of transformation and aggressive growth under CEO Michael Burke. Louis Vuitton’s sales doubled to an estimated 20 billion euros ($21.2 billion) by 2022, with Cantino playing a key role in crafting a compelling narrative across blockbuster collections, high-profile collaborations, and diversified business units. The Jing Take As Gucci’s fortunes waver under macroeconomic headwinds and muted demand in key markets, the brand has struggled to reclaim its cultural cachet and elevate its desirability. Gucci’s first-half revenue fell 20% YoY to 4.1 billion euros ($4.5 billion), reflecting the challenge of shifting away from Alessandro Michele’s maximalist designs to a more restrained, heritage-driven aesthetic. Despite appointing new creative director Sabato De Sarno, whose runway debut in September 2023 was met with lukewarm reviews, the brand has yet to fully execute a turnaround strategy. Kering’s appointment of Cantino aims to harness his dual experience in luxury heritage and modern brand-building to reignite Gucci’s growth trajectory. “We need to remember what is the DNA of Gucci, but at the same time have a super strong fashion component,” Kering Deputy CEO Francesca Bellettini wrote in the appointment release. “The moments when Gucci was most successful were when the two things were combined together.” The move comes as Kering continues to reshape its leadership amid a broader industry reset. Burberry, Versace, and Valentino are among other brands that have reshuffled management or creative leads in the wake of slower luxury sales growth globally, compounded by economic uncertainty in China – traditionally one of Gucci’s strongest markets. The brand’s renewed focus on core products and enduring craftsmanship could resonate with a shifting consumer mindset, but only time will tell if Cantino can pull off the balancing act required to re-establish Gucci as a luxury powerhouse. For now, industry insiders and investors alike are watching closely to see whether this leadership change can spark the turnaround Gucci desperately needs. Kering shares edged up nearly 1% following the announcement, signaling cautious optimism for what lies ahead. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Can Gucci’s new CEO Stefano Cantino spark a revival?

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Published October 09, 2024

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Can Gucci’s new CEO Stefano Cantino spark a revival?