Gucci Gets New CEO Amid Brand Turnaround Efforts — 3rd 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 in the new year. 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--home to other brands such as Balenciaga and Yves Saint Laurent--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.

After years of strong results fueled by a surge in demand for luxury goods, the industry is grappling with slowing sales globally. China's economic woes added to the wider slowdown as clients in that key market cut back on spending.

Kering 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. Goldman Sachs analysts warned this month that the group wouldn't immediately benefit from China's stimulus package.

Cantino's elevation to the top job comes a year after Kering announced the departure of former Gucci CEO Marco Bizzarri as part of a broader management reshuffle, with Jean-Francois Palus stepping in on an interim basis. The group also appointed Sabato de Sarno as Gucci's creative director in January last year in an effort to get the brand back on track.

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 13:11 ET (17:11 GMT)

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