Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Investing

Why are Kering shares tumbling, and what does Demna Gvasalia have to do with it?

March 15, 2025
in Investing
Why are Kering shares tumbling, and what does Demna Gvasalia have to do with it?
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Shares of Kering SA nosedived nearly 13% on Friday after the luxury fashion house announced Demna Gvasalia as the new artistic director of Gucci.

The move marks a bold shift for the struggling brand, which has faced slumping sales and declining demand in key markets like China.

Demna, widely recognized for his disruptive aesthetic at Balenciaga, is expected to revamp Gucci’s creative vision, but investors remain skeptical about the transition.

linda‎‎

@itgirlenergy

·Follow

JUST IN – Demna Gvasalia of Balenciaga is now the creative director of Gucci!

10:40 PM · Mar 13, 2025

1.5K

Reply

Read 103 replies

The stock drop signals market concerns over whether Demna can successfully steer Gucci out of its sales slump.

Gucci’s revenue plunged 24% year-on-year in the fourth quarter, falling to €1.92 billion, dragging down Kering’s total revenue by 12%.

The appointment comes just a month after Sabato De Sarno’s departure, underscoring Kering’s urgency to reposition Gucci in the highly competitive luxury fashion market.

Who is Demna Gvasalia?

Demna, who dropped his last name professionally in 2021, has built a reputation as one of the most innovative and provocative designers in the fashion world.

Since taking over Balenciaga in 2015, he transformed the brand into a streetwear powerhouse, merging avant-garde designs with cultural commentary.

Under his leadership, Balenciaga’s revenue skyrocketed from approximately €200 million to an estimated €1.76 billion in 2021.

His appointment at Gucci signals a major creative shift. “His creative power is exactly what Gucci needs,” said François-Henri Pinault, Kering’s chairman and CEO, in a statement. Demna himself expressed enthusiasm about the role, stating:

“It is an honour to contribute to a house that I deeply respect and have long admired. I look forward to writing a new chapter of Gucci’s amazing story.”

Also Read: Bernard Arnault may lead LVMH until 85 as shareholders vote on tenure extension

Gucci’s declining sales and Kering’s turnaround strategy

Gucci, once Kering’s crown jewel, has struggled in recent years amid shifting consumer preferences, weaker demand in China, and increasing competition from brands like Prada, Louis Vuitton, and Hermès.

Despite being Italy’s largest luxury brand, Gucci’s revenue fell from a peak of €10.5 billion in 2022 to €7.65 billion in 2024.

Kering’s strategy under CEO Stefano Cantino has focused on brand elevation, quality control, and operational efficiency.

Cantino and Francesca Bellettini, Kering’s deputy CEO for brand development, first approached Demna several months ago.

“We went out for dinner and I said, ‘We would really love to talk about this opportunity,’” Bellettini revealed.

“After a second of thinking, he was very excited and said: ‘Yes! I have it in my mind — let me put together the project for you.’”

Demna’s vision for Gucci

Demna’s design philosophy has always blended street culture, irony, and high fashion, making him a polarizing yet highly influential figure.

His challenge at Gucci will be to balance its luxury heritage with his signature edgy aesthetic.

Interestingly, this isn’t his first creative engagement with Gucci.

In 2021, he collaborated with then-creative director Alessandro Michele on the “Hacker Project,” which saw Balenciaga graphics appear on iconic Gucci handbags.

Now, he will have full creative control, and industry insiders are eager to see how he integrates Gucci’s traditional Italian craftsmanship with his progressive vision.

Market fears and investor skepticism

Despite Kering’s confidence in Demna, investors are concerned about the risks.

Gucci’s brand identity has been through several transformations in recent years, and a radical shift in design philosophy could either revitalize sales or alienate its core customer base.

Luxury stocks have faced growing headwinds due to economic uncertainties, China’s slowing luxury spending, and changing consumer tastes.

Demna’s history at Balenciaga has also been controversial, particularly in 2022, when the brand faced backlash over a poorly received ad campaign.

Demna will officially begin his tenure at Gucci after his final Balenciaga couture show on July 9.

He has already started working with Cantino, including a visit to Gucci’s archives in Florence to study the brand’s history.

Executives at Kering believe Gucci is primed for a major comeback.

The post Why are Kering shares tumbling, and what does Demna Gvasalia have to do with it? appeared first on Invezz

Previous Post

Trump-linked WLFI secures $590 million, claiming a spot in top 10 token sales

Next Post

Why is NHS England being scrapped?

Next Post
Why is NHS England being scrapped?

Why is NHS England being scrapped?

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    Tesla stock craters as Trump vows to end Musk’s government subsidies

    June 6, 2025
    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025
    Circle stock price prediction: is CRCL a good buy today?

    Circle stock price prediction: is CRCL a good buy today?

    June 6, 2025
    Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity

    Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity

    June 6, 2025
    European markets open: Stoxx 600 flat ahead of US non-farm payrolls; trade tensions persist

    European markets open: Stoxx 600 flat ahead of US non-farm payrolls; trade tensions persist

    June 6, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    May 6, 2025

    Latest

    Tesla stock craters as Trump vows to end Musk’s government subsidies

    June 6, 2025
    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved