Gucci’s creative shake-up: Sabato De Sarno’s departure highlights ongoing turmoil at Kering

Gucci’s abrupt announcement on Thursday that Sabato De Sarno will depart as creative director was a stark and understated conclusion to his short tenure at the helm of the Italian fashion house. In a terse press release, Kering—the luxury conglomerate that owns Gucci—offered no statement from De Sarno himself. Instead, it struck an optimistic tone about the brand’s future, with executives expressing eagerness for “the next chapter” of Gucci’s evolution.

The departure of De Sarno, who joined in January 2023, reflects the mounting challenges facing Gucci, once the crown jewel of Kering’s portfolio. Hired by then-CEO Marco Bizzarri, who also left his post amid mounting pressure in mid-2023, De Sarno’s role was widely viewed as transitional. His mission: to steer Gucci back toward growth after several quarters of stagnating sales and fading consumer excitement. However, his tenure was short-lived—ending before the completion of the standard three-year contract—underscoring the difficulties inherent in revitalizing a brand of Gucci’s scale and cultural significance.

Stalled turnaround

De Sarno’s tenure was beset by challenges from the outset. Supply chain delays meant that his debut collections were slow to reach stores, preventing an immediate impact on sales. Moreover, the physical environment of Gucci’s retail spaces—still heavily influenced by the maximalist aesthetic of his predecessor, Alessandro Michele—clashed with De Sarno’s more minimalist and classic approach. Store updates, often a key element in repositioning a brand’s image, were not undertaken, likely due to budgetary considerations and concerns over declining sales.

Gucci’s new CEO, Stefano Cantino, who assumed his role in January, has inherited a brand in flux, but was also hired to likely manage a designer transition. The ongoing question is whether a complete overhaul—both creatively and operationally—will be necessary to reignite consumer interest and restore Gucci’s growth trajectory. With Gucci accounting for nearly 60 percent of Kering’s profits, the stakes for Cantino and Kering’s chairman François-Henri Pinault are high.

An uphill battle

De Sarno’s appointment was always a risky bet. Little known outside industry circles, his previous role as a design director at Valentino did not bring him the high-profile creative clout associated with many other luxury creative directors. Yet, his minimalist take on Gucci’s collections resonated with some customers, particularly through accessories such as oxblood-red leather goods and reworked handbag silhouettes. Still, it was not enough to move the needle on overall sales, which continued to decline.

Gucci’s sales fell 14 percent year-on-year in the third quarter of 2024, and its parent company has come under increasing pressure to reverse the trend. Kering’s upcoming earnings call next week will be closely watched, with analysts expected to question the absence of a clear artistic direction for Gucci, its most significant revenue driver.

A familiar pattern

Gucci’s creative turnover has fueled speculation about who might take the reins next. The fashion industry’s rumour mill is already in overdrive, with reports that Maria Grazia Chiuri, creative director at Dior, has been in discussions with Kering. Others have touted Hedi Slimane—currently free after a tenure at Celine—as a potential candidate. Whether Kering will take the more cautious route of hiring a high-profile designer or opt for an unknown talent remains to be seen.

Francesca Bellettini, Kering’s deputy CEO in charge of brand development, was diplomatic but vague in her comments, thanking De Sarno for his “loyalty and professionalism.” No hints were offered about the circumstances of his departure or the timeline for appointing a successor.

Adding to the intrigue, insiders reported that Gucci had internally circulated a memo announcing a new designer who would work under De Sarno—only for his dismissal to be made public within 24 hours. Speculation abounds that De Sarno may have known his fate, but was unwilling to carry on the pretense of business as usual during Milan Fashion Week.

High stakes for Kering

For Pinault, who has recently refocused Kering’s strategy toward improving profitability and expanding into ultra-luxury categories, Gucci’s performance is critical. The brand’s fading momentum stands in contrast to rivals such as LVMH’s Louis Vuitton and Hermès, which have successfully navigated shifting consumer tastes in a post-pandemic world.

Investor confidence in Kering has already been shaken by Gucci’s struggles. Shares of the company have underperformed its peers over the past two years, with analysts calling for more decisive action to revive the house’s fortunes. Any further delay in appointing a new creative director could fuel additional uncertainty.

Next week’s quarterly results will be telling—not just for Gucci’s immediate future, but for Kering’s ability to maintain its position in an increasingly competitive luxury market. For now, the slate has been wiped clean at Gucci once again, with the search for a new creative visionary already underway. The only certainty is that the next chapter in Gucci’s story will be closely scrutinized by both the fashion world and investors alike.