By Tassilo Hummel
PARIS (Reuters) -Gucci design chief Sabato De Sarno is leaving the Italian flagship label after less than two years in the job, owner Kering said on Thursday, as the brand strives to attract wealthier shoppers and reverse its weak sales.
De Sarno, a 42-year-old Italian minimalist, took over as Gucci’s chief designer in 2023, succeeding Alessandro Michele, one of the towering figures of the fashion industry whose exuberant and playful designs defined the brand for seven years.
The announcement he is leaving was made less than a week before Kering is due to report full-year results.
Kering shares fell by around 3% in early trade on the news. They later recovered and to end 3% higher as upbeat results from luxury peer Tapestry boosted the sector.
De Sarno’s dismissal is the first major change by Gucci Chief Executive Stefano Cantino, who was appointed last year.
Revenues at Gucci, which account for about half of the group’s total, were down 25% in the third quarter, dragging down Kering’s performance. The company’s share price has fallen by roughly a third over the last 12 months.
Barclays analyst Carole Madjo said the Gucci brand, famous for its loafers, handbags and belts, could struggle to recover.
“Gucci has rather unfavourable cards in its hands – very exposed to China, middle-class income customers, and a brand that has been in decline for the last 3-4 years,” she said. “The top priority should be to make the brand more popular and fashionable again.”
De Sarno’s departure is another high-profile designer change in the luxury industry as it grapples with the impact of weak Chinese demand and inflation-weary shoppers.
“The large number of design changes shows that the industry is in a state of upheaval. In the last two to three years, too much focus has been placed on price increases and too few new products and innovations have been presented by many brands”, said Stefan Bauknecht, portfolio manager and luxury sector specialist at Deutsche Bank’s DWS.
Finding a replacement for one of the most prestigious posts in the fashion industry may take time.
Potential candidates include Italian Pierpaolo Piccioli, who last year left Valentino, and John Galliano who also last year left Maison Margiela. Hedi Slimane, the former Dior Homme and Yves Saint Laurent designer, was cited as another possible candidate by a trade magazine.
This month’s Gucci fall-winter fashion show in Milan will be signed by the brand’s design office, Kering said.
(Reporting by Tassilo Hummel, additional reporting by Mimosa Spencer, Sudip Kar-Gupta; Editing by Makini Brice, Mark Potter and Barbara Lewis)
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