Investors will be looking to see if Gucci’s new creative director Sabato de Sarno can move the needle on the company’s financial performance when its owner Kering reports full-year earnings.
Due to Gucci’s recent revenue declines relative to competitors like LVMH-owned Louis Vuitton and Dior, the brand changed its creative direction by hiring De Sarno.
The 40-year-old Italian, who was little unknown when he was hired in January of last year, gave the label its first runway presentations in September of last year and January of 2024, showcasing more refined, subdued looks.
The tone of the prognosis from Kering officials will be widely watched for signals on their possible success, even if sales of De Sarno’s new designs, which only started to fill stores this year, will not be reflected in the company’s end-of-year financial data.
Gucci’s brand makeover is happening as the industry recovers from a robust post-pandemic upswing, with growing costs stifling demand from less affluent consumers.
The most resilient brands have proved to be those catering to the wealthiest such as Hermes and Richemont-owned Cartier. The more affordable Burberry brand, which is attempting to move upmarket, issued a profit warning last month.
Design experts claim that De Sarno, who had worked behind the scenes at design company Valentino, has brought a grounded attitude to his prominent role. He used terms like “simplicity” and “real life” in his show notes.
