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It’s also a new executive era at Gucci after the departure of Marco Bizzarri. Jean-François Palus became interim CEO as part of an executive reshuffle announced in July, and the search for a permanent CEO “is not so far a priority, and the focus is on first and foremost about the execution of the strategy”, Duplaix said. Expect, however, some new appointments going forward. “It’s not a complete reset of the organisation. It’s more about having some talent here and there where we feel that there is a need,” he added.
As part of the group reorganisation, Francesca Bellettini was promoted to Kering deputy CEO while maintaining her role as Saint Laurent CEO. Asked by analysts if she has “too much on her plate”, Duplaix answered: “Francesca is already involved in a new role at Kering but is maintaining her leadership of Saint Laurent, which is very important because it does allow her to stay grounded in operation, a very important factor to steer the development of all the other brands, and also to continue to manage Saint Laurent in this period, which is more challenging for the industry and also for the brand for specific reasons.”
Asked about the underperformance of Saint Laurent compared to peers, while it shined in the same quarter last year, Duplaix cited the wholesale pullback and exposure to Western Europe and North America (57 per cent of sales combined). “It’s true that there’s probably less products to buy [for aspirational customers],” he also noted, flagging the higher price point.
Kering also noted that it is on target to finalise its acquisition of a 30 per cent stake in Valentino before the end of the year.
Analysts are expecting improvements ahead. “Kering’s equity story revolving around Gucci’s rejuvenation under a new creative vision and management team, together with a change in the group’s organisational structure, hidden value at Saint Laurent, Bottega Veneta and Balenciaga and potential for further M&A in beauty and fashion and capital returns, should unlock value over time, we think.”
The analyst added: “While a more uncertain macro and geopolitical environment might delay early signs of Gucci’s renaissance, Kering has demonstrated an ability to execute various brand turnarounds over the past decade and to elevate relatively unknown creative talents.”
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