# Gucci’s challenge: reigniting heat while boosting timeless appeal
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-31
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: New Gucci Creative Director tasked with sparking heat and
Meta Description: Learn about the exciting new direction Sabato De Sarno, formerly of Valentino, is taking Gucci in to reinvigorate the brand and spark renewed interest in the
URL: https://financedigest.com/guccis-challenge-reigniting-heat-while-boosting-timeless-appealhtml

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By Mimosa Spencer

PARIS (Reuters) -Sabato De Sarno, newly appointed by Kering to reinvigorate its prized Gucci brand, needs to spark heat with a new direction, analysts say – a delicate task, given the emphasis executives have also put on the label’s timeless appeal.

De Sarno, a senior fashion designer from Valentino, is tasked as creative director with reviving the fortunes of the brand that accounted for two-thirds of Kering’s profits in 2021.

An emphasis on classics was a [priority outlined by executives at the company’s investor presentation last year](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway"), and Gucci has recently revived its bamboo-handle model handbag from 1947, as well as its over-the-shoulder Jackie bag from 1961.

But analysts say De Sarno will also have to generate buzz with hot new styles – a [strategy that has traditionally](https://www.financedigest.com/traditional-security-defences-may-prove-inadequate-for-effective-gdpr-strategies-warns-aruba.html "Traditional Security Defences May Prove Inadequate for Effective GDPR Strategies, Warns Aruba") served the brand well, compared to the path taken by some rivals that focus more strongly on signature classics, especially handbags.

The future of Gucci is not to become another (Louis) Vuitton, Chanel or Hermes, but to nurture its fashion content to drive customers [back to the brand,”](https://www.financedigest.com/2016-the-fight-back-of-the-established-brand.html "2016 – THE FIGHT BACK OF THE ESTABLISHED BRAND") said Antoine Belge, analyst with Exane BNP Paribas.

Kering declined to comment on its strategy for the brand.

The [group had been under pressure to quickly appoint someone to the top](https://www.financedigest.com/james-trainor-top-fbi-cyber-expert-joins-aons-cyber-solutions-group.html "James Trainor, top FBI cyber expert, joins Aon’s Cyber Solutions Group") creative job at Gucci following the abrupt departure in November of Alessandro Michele.

The flamboyant designer, who was a favourite of Harry Styles and Lady Gaga, had overseen a period of [soaring growth](https://www.financedigest.com/nestle-sales-soar-as-price-rises-drive-growth.html "Nestle sales soar as price rises drive growth") in 2015-19, with eccentric, gender-fluid designs.

However in recent quarters Gucci has lagged rivals including Hermes and LVMH’s [top brand](https://www.financedigest.com/top-luxury-car-brands-in-the-world.html "Top luxury car brands in the world") Louis Vuitton, with its performance in the key Chinese market becoming a source of concern for investors amid COVID-19 lockdowns.

For Bernstein analyst Luca Solca, Gucci needs to make a strong statement to return to the [center stage](https://www.financedigest.com/2021-predictions-operational-resilience-takes-center-stage.html "2021 Predictions: Operational Resilience Takes Center Stage"). “Gucci has to be over the top in order to thrive,” said Solca.

Analysts welcomed Kering’s choice of a seasoned but relatively unknown designer, noting that previous creative [director Michele did not have a public profile when he was appointed](https://www.financedigest.com/adnami-appoints-sophie-spencer-as-uk-agency-sales-director.html "Adnami appoints Sophie Spencer as UK Agency Sales Director") in 2002.

“Another bold choice that may work well again,” said Jefferies analyst Flavio Cereda, though he cautioned that the director’s task was not “straightforward this time”.

Among challenges cited by Cereda is potential turmoil as Gucci brings on an outsider while the previous designer’s teams are still in place, and the [time it will take for the market](https://www.financedigest.com/tough-times-and-risky-business-which-emerging-market-assets-are-a-bet-worth-taking.html "Tough times and risky business – which emerging market assets are a bet worth taking") to understand a new direction from the label.

De Sarno will show his first Gucci collection in September in Milan. His [experience at Valentino suggests a “less eccentric aesthetic” than Gucci’s previous designer](https://www.financedigest.com/western-digital-transforms-the-mobile-experience-with-new-high-performance-solutions-designed-to-address-todays-and-tomorrows-consumer-demand-for-high-quality-content.html "Western Digital Transforms the Mobile Experience with New High-Performance Solutions Designed to Address Today’s and Tomorrow’s Consumer Demand for High-Quality Content"), noted Carole Madjo of Barclays.

The designer rose through Valentino’s ranks after his arrival in 2009 to become fashion director overseeing both the [men’s and women’s](https://www.financedigest.com/bloom-uk-launches-fourth-annual-co-mentoring-scheme-the-exchange-for-senior-and-c-suite-men-and-women.html "Bloom UK launches fourth annual co-mentoring scheme, The Exchange, for senior and C-suite men and women") collections, working closely with chief designer Pierpaolo Piccioli.

Now, “all eyes will be on de Sarno’s talent and creativity, and how he can collaborate with the merchandising team at Gucci,” said Caroline Reyl, head of premium brands at Pictet [Asset Management](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments").

Creative directors are particularly scrutinized when a brand is in a transition, she said.

The announcement of his appointment came ahead of Kering’s Feb. 15 earnings release, which will likely show the label’s fourth-quarter sales saw one of the more pronounced slowdowns among the [world’s top](https://www.financedigest.com/top-10-fastest-bikes-in-the-world.html "Top 10 fastest bikes in the world") fashion labels due to coronavirus disruptions in China.

Kering’s [share price](https://www.financedigest.com/twitter-shares-cruise-towards-musks-offer-price-as-deal-deadline-looms.html "Twitter shares cruise towards Musk’s offer price as deal deadline looms") was mostly flat on Monday, down 0.1% at 1333 GMT.

(Reporting by Mimosa Spencer; Editing by Jan Harvey)


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