Gucci Risks a Wardrobe Malfunction With Demna

KERING SA'S GUCCI on Thursday named controversial Balenciaga designer Demna Gvasalia as the creative director of Gucci.

- Andrea Felsted Bloomberg

While a radical new direction is clearly needed at the struggling Italian house, the appointment is a huge gamble for Kering.

Demna, as he is known, could re-energise Gucci, bringing excitement back to the storied label. But his streetwear-focused hits at sister-label Balenciaga look at odds with Gucci's heritage as well as the current direction of fashion and the industry's big spenders. Gucci has experienced a wild ride over the past decade. Its popularity soared under former creative director Alessandro Michele, whose granny chic won an army of young fans in China and the US. But the clashing prints and bold logos fell out of favour amid the uncertainty of the pandemic followed by soaring inflation that pinched incomes.

Gucci parted ways with Michele, and two years ago appointed Sabato de Sarno to lead the brand. The latter's sleeker aesthetic has begun to win over shoppers and shape the fashion agenda, but it's never caught on more broadly. Sales excluding currency movements fell 24% in the most recent quarter.