Gucci has appointed Stefano Cantino as its new CEO, effective 1 January 2025.
- Cantino, who joined Gucci in May 2024, has a strong background in luxury fashion, having worked with Louis Vuitton and Prada.
- The outgoing CEO, Jean-François Palus, will step down after a challenging tenure marked by declining revenues.
- Kering’s financial struggles have included a significant drop in Gucci’s sales, highlighting the need for strategic leadership.
- François-Henri Pinault, Kering chairman, praised Palus for laying the foundation for Gucci’s future under Cantino’s leadership.
Gucci, under the parent company Kering, has announced a change in leadership, appointing Stefano Cantino as the new CEO. This transition, effective from 1 January 2025, marks a significant shift for the iconic luxury brand as it navigates through a difficult financial phase. The announcement follows Cantino’s appointment as deputy CEO in May 2024, where he brought extensive experience from his previous roles at Louis Vuitton and Prada.
Jean-François Palus, the current CEO of Gucci, will step down after serving in the position since July 2023. During his tenure, Palus faced formidable challenges, including a marked decline in both revenues and profits. Specifically, for the fiscal year ending 31 December 2023, Kering reported a 17% decrease in net profits, falling to €2.98 billion from €3.6 billion the previous year. This financial downturn continued into 2024 with Gucci’s sales dropping 18% in the first half, compared to an 11% reduction across all Kering brands.
François-Henri Pinault, chairman and CEO of Kering, acknowledged Palus’s contributions during this turbulent period. He commended Palus for making difficult decisions that were essential for stabilising Gucci and expressed gratitude for their longstanding collaboration, which spanned three decades. Pinault also conveyed optimism about the future, suggesting that Cantino’s leadership would steer Gucci towards renewed success.
The transition in leadership comes amid broader financial challenges for Kering, which owns several luxury fashion brands including Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen. The company has faced a continuous downturn in sales, pressing the need for effective leadership and strategic initiatives to revitalise its portfolio. Cantino’s appointment is viewed as a crucial step in revitalising Gucci and, by extension, Kering’s overall performance.
Gucci’s leadership change reflects a strategic response to its ongoing financial challenges, paving the way for potential recovery.
