Gucci Design Chief Sabato De Sarno to Depart

By Tassilo Hummel

PARIS (Reuters) – Gucci design chief Sabato De Sarno is leaving the Italian flagship label after less than two years in the position, as announced by owner Kering (EPA:PRTP) on Thursday. This change occurs as the brand aims to attract wealthier shoppers and reverse poor sales performance.

De Sarno, a 42-year-old minimalist designer, took over as chief designer in 2023, succeeding Alessandro Michele, who was central to the brand’s identity for seven years with his vibrant and playful designs.

The announcement comes just days ahead of Kering’s full-year results report. Following the news, Kering shares dropped around 3% in early trading, but later recovered to end 3% higher after positive results from luxury peer Tapestry (NYSE:TPR) boosted market confidence.

De Sarno’s exit is the first significant alteration made by Gucci’s CEO Stefano Cantino, who was appointed last year. Revenues at Gucci, which make up about half of Kering’s total, fell 25% in the third quarter, significantly impacting Kering’s overall performance, with the company’s share price down approximately a third over the past year.

Barclays (LON:BARC) analyst Carole Madjo expressed concerns about Gucci’s future, highlighting its vulnerability to Chinese demand and declining brand popularity over recent years.

“Gucci has rather unfavorable 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 noted. “The top priority should be to make the brand more popular and fashionable again.”

De Sarno’s departure reflects a broader trend in the luxury industry, which faces challenges from weak Chinese demand and inflationary pressures affecting consumer spending.

Stefan Bauknecht, a luxury sector specialist at Deutsche Bank (ETR:DBKGn)’s DWS, stated, “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.”

Identifying a replacement for one of fashion’s most esteemed roles could take time, with potential candidates including former Valentino designer Pierpaolo Piccioli, John Galliano from Maison Margiela, and Hedi Slimane, formerly with Dior Homme and Yves Saint Laurent.

Kering confirmed that this month’s Gucci fall-winter fashion show in Milan will be designed by the brand’s design office.