Gucci Chief Executive Officer Marco Bizzarri is set to leave the brand as owner Kering SA moves to turn around the previously high-flying Italian label following a slump in its performance.
(Bloomberg) — Gucci Chief Executive Officer Marco Bizzarri is set to leave the brand as owner Kering SA moves to turn around the previously high-flying Italian label following a slump in its performance.
Bizzarri, who’s been running Gucci since 2015, will leave the company on Sept. 23, Kering said Tuesday. Jean-Francois Palus, currently group managing director, will lead the brand for a transitional period.
Kering shares jumped as much as 6.8% in early Paris trading.
Bizzarri’s departure comes after growth at Gucci — which accounts for about two-thirds of Kering’s profit — lagged behind rivals in recent years. Its previous creative director, Alessandro Michele, left in November and was replaced by Sabato de Sarno, who’s scheduled to unveil his first collection for the brand in September.
Palus, described by Kering CEO Francois-Henri Pinault in the statement as his right-hand man and daily sparring partner, will focus on strengthening Gucci’s teams and operations to revive the brand’s momentum. Palus will relinquish his position on Paris-based Kering’s board and relocate to Milan.
Evolution
The management changes are “not a Big Bang but a logical evolution,” Citigroup analyst Thomas Chauvet said in a note. The moves will improve decision-making and show a determination to transform Gucci, he added.
Kering’s stock this year has trailed gains of more than 25% at LVMH Moet Hennessy Louis Vuitton SE and Hermes International. Pinault said the shakeup is aimed at fully capturing the growth of the global luxury market, which has helped make LVMH the most valuable company in Europe.
Under the early leadership of Bizzarri and Michele, Gucci’s revenue more than doubled between 2015 and 2019, and the brand’s popularity on Instagram — the go-to social media platform for fashionistas — also boomed. But the pandemic brought an end to the years of soaring growth at the Italian brand.
Kering has suffered of late not only from a slowdown at Gucci, but also sluggish sales at Balenciaga. That brand’s performance was hurt after an ad campaign late last year was perceived as sexualizing children, prompting an apology from the label.
As part of a wider reorganization at the top of Kering, Francesca Bellettini, the CEO of Yves Saint Laurent, will take on the additional role of group deputy CEO, with all the brand’s chiefs reporting to her. A new top management for Yves Saint Laurent will be eventually put in the place, Kering added.
Jean-Marc Duplaix, Kering’s chief financial officer, will also become a deputy CEO, overseeing operations and finance.
Read more: With Gucci and Balenciaga Struggling, Kering Aims for a Reset
(Updates with shares in third paragraph, comment from Pinault in fifth, analyst quote in fifth)
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