Unwrapping in 2025 - Leadership overhauls beckon fresh beginnings: The turnaround strategies of new CEOs

2024 seemed to take shape as a period of transition for many of the industry’s biggest players as they looked to swiftly, yet effectively, turn around lacklustre financials and return to growth, profitability or both. To lead such strategies, many took to overhauling their leadership teams, naming new CEOs in the process who have come in guns blazing to bring about change. FashionUnited takes a look at what is on the horizon as the biggest stories of 2024 continue to unfold into 2025.

Nike’s move to a sports-focused, premium business

Sportswear giant Nike has been struggling in the face of increased market competition, causing disappointing financial results over recent quarters. In light of this, the company called in long-time veteran, Elliot Hill, in September to helm the team. It wasn’t until December 2024, upon the release of Nike Q2 results, in which revenues continued falling by 8 percent, that Hill got his first opportunity to outline his plans for the company. The CEO made it clear that “immediate action” was to be taken to reposition the business and, after noting feedback gathered from a widespread assessment, Hill announced phases of a turnaround plan, which would address Nike’s apparent loss of obsession with sport.

This plan zones in on five specific points intended to return Nike to its former status as a sports-focused, premium company. From a sharper focus on specific segmented sports and a more sports-centric marketing plan to a reexamination of its franchises, each step intends to address and cater to certain market demands identified by Hill, with the mission of driving incremental growth. Hill also puts an emphasis on building back up partner relations, particularly in the way of premium retailers, with which he wants to elevate customer experiences.

In his conclusion, Hill said: “Some of these actions are already underway and some need to move faster. And I will continue to evaluate and assess what is needed. I recognise that some of these actions will have a negative impact on our near-term results. But we’re taking the long-term view here. We’re making the decisions that are best for the health of our brands and businesses. Decisions that will drive shareholder value. I strongly believe Nike’s path to sustainable, profitable growth will be through sport.”

Macy’s faces investor doubt amid turnaround plan

At the beginning of 2024, Tony Spring took up the CEO position of Macy’s amidst the proposal of a takeover bid from activist investors. The company later declined the offer, instead agreeing to appoint two new directors from one firm to its board. It then doubled down on its ongoing turnaround plan, ‘A Bold New Chapter’, largely focused on expanding its small-format store presence, growing Bloomingdale’s and reducing its workforce. It was a strategy aimed at improving shareholder value at the company, for which shares had fallen around 70 percent over the last decade.

Such efforts seemed to already be subtly paying off by the third quarter of the year, when, despite a 2.4 percent drop in overall net sales, Bloomingdale’s and Bluemercury posted respective sales increases, as did the 50 stores it had revamped prior to the period. Macy’s adjusted its projected full year net sales to be in the range of 22.3 billion to 22.5 billion dollars, as comparable sales continued to “trend ahead of third quarter levels”, Spring said.

Despite the expressed positivity, investors continued to question whether Macy’s was cut out to follow through with turnaround. So, akin to the beginning of the year, two activist shareholders called on the US department store to make a number of changes to its structure, including a possible sale of Bloomingdale’s and a reevaluation of its expenditure projects, after it delivered “limited sustainable improvements” to operating results. Responding to the letter, Macy’s once again reaffirmed its existing strategy, which it said it has regularly reviewed. The company noted that it intended to engage with shareholders as initiatives advance.

Kering’s leadership overhaul

Alongside an overhaul in creative directors, luxury group Kering also made some major shifts among executive teams, bringing in new CEOs for Gucci, Saint Laurent and Balenciaga. The major move around came as a response to waning luxury demand that has impacted the performance of many brands in the sector, but particularly Gucci. Upon the appointment of Stefano Cantino to its helm, the Italian brand reported a drop in revenue of 26 percent for 2024’s Q3. It thus appears that Cantino has been brought in to amend the situation, with a statement from Kering at the time noting that he was to continue building on the foundations his predecessor, Jean-François Palus, set up, ringing in a new chapter.

Similar changes were also initiated at Saint Laurent and Balenciaga, where Cédric Charbit and Gianfranco Gianangeli were, respectively, appointed CEOs. Their addition converts the role of Kering’s deputy CEO, Francesca Bellettini, to a one entirely dedicated to the development of all Kering fashion, leather goods and jewellery houses. Charbit, meanwhile, has been tasked with further building on the positioning of Saint Laurent, while at Balenciaga, Gianangeli is to strengthen and expand the brand’s reach.

Kohl’s being ‘conservative’ as apparel demand dampens

Akin to its market peer Macy’s, Kohl’s also faced challenges from activist investors and takeover bids over the past three years, having similarly reported a string of disappointing financials. The company quickly appointed Tom Kingsbury as its new CEO to appease critics in 2023, however, his term is to swiftly end January 15, 2025, with Ashley Buchanan due to step into his place. While Kingsbury was credited with guiding a transformation of Kohl’s, elevating its portfolio and enhancing store experiences, it is currently unclear what Buchanan has in store for the retail chain. Q3 results continued to not meet expectations for the retailer, however, particularly due to softened demand for apparel and footwear. Addressing this, Kingsbury said the company was “taking aggressive action to reverse the sales declines”, and is thus approaching its yearly outlook “more conservatively”.

Michael Kors reshuffles in wake of failed merger

Upon the termination of a proposed merger between Tapestry and Capri, the latter has taken to reassessing its own business model, particularly at Michael Kors, where it seems its focus will be trained. To lead this phase, and as part of wider reorganisation plans, Capri’s current chairman, John Idol, stepped into the CEO role for the brand, with the central mission of returning Michael Kors to growth. At the time of his appointment, Idol said he was looking to implement strategic initiatives to stabilise revenues and energise both new and loyal consumers. The company has also named Philippa Newman as chief product officer, a role through which she will lead a product transformation strategy.

Dr Martens prevails in ‘year of transition’

Upon reporting widening losses for the half year period, Dr Martens’ board said it was to take “swift action” to rectify the situation. This will take shape in a cost savings plan overseen by incoming CEO Ije Nwokorie, who is to leverage his previous experience in driving DTC-led growth. 2024 had already been hailed by Dr Martens as a “year of transition”, having previously outlined four main objectives for the period: to build on product-focused marketing, to turn around its US DTC performance, to reduce operating costs and strengthen the balance sheet. These will each remain integral in the coming year, particularly with the brand slipping into the red for the half year, alongside a revenue decline of 18 percent.

Boohoo mulls separating business

Boohoo made headlines in the latter half of 2024 largely due to its very public spat with majority shareholder Frasers Group. Such events fell into the public realm in mid-October, when CEO John Lyttle stepped down upon the announcement of a strategic review to assess options within Boohoo's corporate structure, confirming prior speculation that it was mulling a potential split up of its portfolio. Ignoring efforts by Frasers to install its own CEO, Boohoo named Dan Finley Lyttle’s successor, with the hope that the exec could bring the same turnaround magic to the overarching group as he had already carried out at Debenhams, where he had previously helmed.

Finley and the board quickly set about launching a fundraising campaign that drew in 39.3 million pounds via both Placing and Subscription and a Retail Offer. This was later followed by the carrying out of a redundancy plan at the group’s Manchester head office, where a reported 200 employees had been impacted. Boohoo is anticipating that in the second half of FY25, it will welcome a higher GMV and a stronger adjusted EBITDA, despite plans to further invest into brands. The company’s board believes that the group remains fundamentally undervalued and will thus continue to review options for its non-core, non-strategic assets.

John Lewis plans store upgrades after profitable year

After years of struggle, John Lewis finally returned to profit in 2024, a result aided by a long-term transformation plan that has since been hailed to have significantly progressed. As a result, its current CEO, Nish Kankiwala, will be stepping back into a non-executive role from March 2025 to take a back seat in supporting the “next phase” of the company. He will not be directly succeeded for the position, however, with newly appointed chairman, Jason Tarry, to instead take on the task of guiding John Lewis’ future.

Part of this task already took shape in October, when John Lewis unveiled multi-million pound plans to overhaul its stores. Beauty Halls are to be upgraded to be “new and bigger”, while its Oxford Street location is to undergo a 6.5 million pound upgrade. In its final form, the site will serve as a “test bed for transformative improvements” that will then be rolled out to the wider store portfolio.

Victoria’s Secret

2024 marked somewhat of a comeback year for the formerly controversial lingerie label, Victoria’s Secret. We say “somewhat” because, while the period saw the brand return to the runway and relaunch own brands, losses remained present and concern over financials impacted shares. By the second half of the year, however, things began looking more promising, particularly upon the announcement that former exec of Savage X Fenty, Hillary Super, was to take up the role of CEO. Described as someone who “takes brands to the next level”, Victoria’s Secret seems to be riding on leveraging Super’s experience, to “power the business’ next chapter and deliver the foremost tenet of [its] transformation strategy: accelerating growth in [its] core business in North America”.