Gucci Gets New CEO Amid Turnaround Efforts — Update

By Cristina Gallardo and Mauro Orru

Kering appointed Stefano Cantino as chief executive of Gucci as the French luxury-goods giant seeks to revamp its flagship brand at a difficult time for the industry.

The group said Cantino, who served as Gucci's deputy CEO since May, would take the helm of the brand from Jean-Francois Palus on Jan. 1. Cantino will have a seat on Kering's executive committee and will report to Francesca Bellettini, deputy CEO of Kering in charge of brand development.

The announcement comes as Kering seeks to inject new life into Gucci and reduce its reliance on seasonal designs and younger, less affluent customers, and instead focus on higher-spending, aesthetically conservative customers.

The group previously said it expects earnings to continue to fall in the remainder of the year, after reporting a decline in both profit and revenue in the first six months amid sluggish demand in China, a key market for luxury goods. Goldman Sachs analysts warned this month that the group wouldn't immediately benefit from China's stimulus package.

Prior to joining Gucci, Cantino worked for five years at LVMH Moet Hennessy Louis Vuitton, where he was responsible for communication and image for Louis Vuitton. He previously spent 20 years at Prada in various roles, leaving the group as director of communications and marketing.

Write to Cristina Gallardo at cristina.gallardo@wsj.com and Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 08, 2024 12:44 ET (16:44 GMT)

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