Kering has appointed Marco Bizzarri as Gucci’s new leader to help reverse the recent sales slump and boost growth. You’ll see the company focus on creative innovation and stronger operational strategies under his guidance, especially after declining revenues and store closures. This leadership change aims to reconnect Gucci with its customers and revitalise its brand. If you want to understand how these moves might shape Gucci’s future, there’s more to explore ahead.
Amid a sharp sales decline at Gucci, Kering has appointed François-Henri Pinault to elevate Jean-François Palus and introduce Marco Bizzarri as the new leader to steer the brand through its toughest period yet. This strategic move highlights Kering’s urgent need for fresh leadership to navigate declining revenues and reinvigorate the iconic fashion house. As you analyze the situation, you see that Gucci’s first-half 2025 revenue plummeted by 26% year-on-year to €3.0 billion, with the second quarter experiencing a 25% drop compared to the previous year. Direct retail sales also declined by 23%, reflecting regional demand shifts across North America and Asia-Pacific. Wholesale revenue, which represents a crucial portion of Gucci’s turnover, fell sharply by nearly half, between 42% and 50%. This slump has severely impacted the brand’s overall performance, contributing to a 16% decline in Kering’s total sales for the first half of 2025.
Gucci’s sales plunged 26% in first-half 2025, with wholesale revenue halving amid regional demand shifts and store closures.
You notice that Gucci’s operating income shrank to €486 million in the same period, with the operating margin dropping by 8.7 percentage points to 16%. This decline results from both falling revenues and the costs associated with restructuring efforts. Despite these setbacks, Kering is actively implementing measures to contain costs and stabilize finances. The group plans to close 80 stores in 2025, focusing on streamlining its retail footprint to reduce expenses. These closures are part of a broader strategy to optimize operations, although cost containment efforts have only partially offset margin erosion. Meanwhile, Kering has reduced its net debt to €9.5 billion by mid-2025, down from over €10.5 billion at the end of 2024, demonstrating ongoing discipline in financial management.
Leadership at Gucci is undergoing considerable change. Sabato De Sarno’s departure as creative director in February 2025 surprised many, and in July, Demna Gvasalia, formerly Balenciaga’s creative director, was appointed to reinvigorate the brand’s creative direction. Gvasalia’s edgy, provocative style is expected to attract a younger demographic and generate renewed excitement. However, market reactions have been mixed; the appointment triggered a nearly 13% decline in Kering’s share price, wiping out about $3 billion in market value. Investors remain skeptical about choosing an internal candidate over an external outsider, fearing it may limit fresh perspectives.
Despite the turmoil, Gucci’s new leather goods, like the Giglio bag introduced in the Cruise 2026 collection, have shown promising sales. Yet, traditional channels such as wholesale and carryovers continue to struggle, especially in China, Japan, and the US, where demand has weakened markedly. Direct-to-consumer channels performed relatively better but still faced declines. Notably, Bottega Veneta’s steady performance offers some relief, helping offset broader sector challenges. As you follow these developments, it’s clear that Gucci’s future hinges on leadership’s ability to adapt creatively and operationally in a turbulent market landscape. Additionally, the success of Gucci’s products may also benefit from proper storage methods to maintain product quality and appeal.
Frequently Asked Questions
What Are Bellettini’s Plans to Revive Gucci’s Sales?
Bellettini plans to revive Gucci’s sales by focusing on innovative product lines like the new leather goods and signature launches that attract high-end customers. She’s also prioritizing retail network optimization, closing underperforming stores, and streamlining costs. With new creative leadership under Demna Gvasalia, she aims to reinvigorate the brand’s image and appeal to key markets, ensuring a balanced growth strategy amid challenging global conditions.
How Long Will Bellettini Serve as Interim CEO?
You might think Bellettini’s interim role has a fixed timeframe, but ironically, nobody really knows how long she’ll stay. Her appointment is clearly temporary, yet no official end date exists. You’re left guessing if she’ll be around until Gucci’s sales bounce back or if this is just a placeholder until a permanent leader is found. In the world of fashion, even leadership timelines can be as unpredictable as runway trends.
Will There Be Changes to Gucci’s Product Strategy?
Yes, Gucci’s product strategy will see changes. You’ll notice a stronger focus on product innovation, blending retro and modern styles to attract diverse consumers. The brand will also expand collaborations with celebrities and artists, create limited-edition items, and enhance personalization options. Digital integration will play a bigger role, using AI and social media to boost engagement. Sustainability remains key, with eco-friendly materials and ethical practices shaping future collections, aligning with evolving customer values.
How Does Kering Plan to Support Bellettini?
Kering plans to support Bellettini by providing strategic and creative backing, blending bold innovation with operational efficiency. While she steers Gucci’s creative direction, Kering backs her with resources for product innovation, market expansion, and digital transformation. They’re also streamlining retail and wholesale channels to adapt to shifting consumer behaviors. This dual approach guarantees she’s empowered to revitalize the brand’s appeal, balancing artistic vision with business resilience in a challenging market environment.
What Specific Challenges Is Gucci Currently Facing?
You face significant challenges at Gucci, including a sharp 26% revenue decline, eroding profit margins, and weakened operating income. Sales drop across key regions like Europe, Japan, and North America due to reduced tourist activity and economic uncertainties. Consumer demand wanes amid fierce competition and brand fatigue, despite new product lines. Operational issues, retail environment shifts, and difficulty reconciling brand repositioning further complicate your efforts to regain growth.
Conclusion
As you step into Bellettini’s shoes, you realize that leadership can turn the tide even during a sales slump, much like a captain steering a sinking ship towards calmer waters. With her vision and resilience, you’re confident she’ll navigate Gucci through this storm, proving that true strength lies in adaptability. Remember, in a world that often feels like a page out of the 1920s, innovation and determination remain your best allies to weather any crisis.
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