Gucci in crisis

By: Trademagazin Date: 2025. 02. 10. 11:21

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Gucci has long struggled in the luxury market, and the constant rotation of creative directors has not helped matters. The brand is struggling to find its place in a market that is divided between the stable demand of the super-rich and the restrained spending of less affluent buyers. The impact of the problems also extends to Kering, since Gucci is the company’s most important brand. – points out VG.

While the slowdown in the Chinese economy is affecting the entire luxury industry, Gucci has been in a particularly difficult situation since the departure of iconic creative director Alessandro Michele. Since then, the brand has been constantly trying to find a new direction, but so far with little success. Now, Sabato De Sarno, who was responsible for reviving Gucci’s demand, is also leaving.

De Sarno held the position of creative director for only two years, a worrying sign of the brand’s instability. Gucci has previously achieved success with vibrant, bold patterns and disruptive designs, but the new leadership has chosen a more restrained direction. However, this has not brought the expected results, as evidenced by the brand’s revenue falling 26% in the third quarter of 2024 compared to the same period the previous year.

Gucci owner François-Henri Pinault is increasingly exercising control over Kering’s luxury brands, including Saint Laurent and Balenciaga. There have been several leadership changes recently, but the new strategies have not yet yielded visible results. Sudden departures before fashion shows and constant changes in direction add to the uncertainty.