Two years after Sabato De Sarno took the helm at Gucci, tasked with reviving the Italian luxury giant, his tenure has come to an abrupt end. The announcement of his departure comes just days before Kering, Gucci’s parent company, is set to reveal its annual results. With Gucci’s revenue down 26 percent year-on-year in the third quarter, the pressure is on to find a new creative leader who can reignite the brand’s spark.

De Sarno’s exit is effective immediately, meaning his designs won’t grace the runway at Milan Fashion Week later this month. Instead, Gucci’s upcoming womenswear show on February 25 will feature a collection designed by the brand’s in-house studio. But what led to this sudden change, and what’s next for Gucci?

What Went Wrong for De Sarno?

De Sarno was brought in to steer Gucci back to its roots, offering a more restrained and classic aesthetic after the bold, maximalist era of Alessandro Michele. While Michele’s flamboyant designs and streetwear-inspired accessories drove record sales for a time, the post-pandemic luxury slowdown exposed cracks in the strategy.

De Sarno’s quieter, more understated approach failed to capture the imagination of Gucci’s loyal customers. His designs lacked the buzz and excitement that had become synonymous with the brand over the past three decades. As Luca Solca, an analyst at Bernstein, put it: “The demure style of Sabato De Sarno didn’t fit the exuberant image that consumers have built of Gucci.”

But the challenges weren’t just creative. Supply chain issues delayed the arrival of De Sarno’s collections in stores, leaving customers with limited access to his designs. By the time the pieces finally hit shelves, they failed to generate the sales boost Kering had hoped for.

A Broader Shake-Up at Gucci

De Sarno’s departure is part of a larger restructuring at Gucci. In October, luxury veteran Stefano Cantino was named CEO, and he quickly began overhauling the brand’s marketing and communications teams. Cantino’s decisive actions signal a new era for Gucci, one that may prioritize bold leadership and rapid innovation.

Who Could Take Over Gucci’s Creative Helm?

The race to find Gucci’s next creative director is already heating up, with several high-profile names in the mix:

• Hedi Slimane: The former Celine designer is known for his edgy yet classic aesthetic and a proven track record of driving sales. Slimane transformed Saint Laurent into a billion-dollar business during his time at Kering, though his departure was contentious. Could he work his magic at Gucci?
• Kim Jones: Fresh off his exit from Dior Homme, Jones has long expressed a desire to design both men’s and women’s collections under one label. Gucci could offer him that opportunity, though his experience in womenswear remains limited.
• Maria Grazia Chiuri: If Dior’s women’s designer decides to return to Italy, she could be a strong contender. Chiuri quadrupled sales at Dior, but whether her vision aligns with Gucci’s identity is uncertain.
• Jonathan Anderson: The creative force behind Loewe’s resurgence, Anderson has a knack for defining the zeitgeist. However, rumors suggest he may be headed to Dior, and his ties to LVMH could complicate a move to Gucci.

What’s at Stake for Gucci?

The stakes couldn’t be higher. Gucci accounts for roughly half of Kering’s revenue and two-thirds of its operating profit. The brand’s underperformance has weighed heavily on Kering’s share price, and investors are eager for signs of a turnaround.

While shareholders reacted positively to De Sarno’s exit, with Kering’s shares rising 3 percent on the news, the real test will be finding a creative director who can reignite Gucci’s magic. As Solca noted, “Hopefully Kering will announce a big name to replace De Sarno. But with the fashion show pending, I wonder.”

The Road Ahead

Gucci’s next chapter will be critical not just for the brand, but for Kering’s future. With Milan Fashion Week around the corner and a new creative director yet to be named, all eyes are on Gucci to see if it can reclaim its place as one of luxury’s most exciting and innovative brands.

Will Gucci’s next leader bring back the boldness and creativity that defined its golden years? Or will the brand continue to struggle in a fiercely competitive luxury market? One thing is certain: the pressure is on, and the world is watching.

What do you think Gucci needs to do to regain its edge?