The Business of Fashion Podcast - Can Kering Fix Gucci?

Can Kering Fix Gucci?

02/18/25 • 30 min

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Gucci has long been the shining star of Kering’s luxury portfolio, but the brand's recent struggles have exposed weaknesses in the conglomerate’s position. Gucci’s sales plummeted 24 percent in the fourth quarter of 2024, dragging Kering’s overall performance down by 12 percent. The shock departure of Creative Director Sabato De Sarno after less than two years only deepens the group’s instability.

Luxury editor Robert Williams joins executive editor Brian Baskin and senior correspondent Sheena Butler-Young to discuss how Gucci’s downturn is affecting Kering’s broader portfolio, why its attempt at a creative reset didn’t resonate, and what’s next for the group as it searches for a new vision.

Key Insights:

Gucci's downturn has been severe, with sales falling by almost a quarter in 2024. This dramatic slide highlights the challenge of reinvigorating the brand. “[Gucci] has had a few really big booms, but then also some pretty big busts afterward. That creates additional complications for the group and how much they're able to invest in acquiring new brands, in developing the brands they have. And honestly, to also just continue to exist,” says Williams.
Gucci’s identity has become muddled as it leans too heavily on its heritage, potentially limiting its appeal. “Gucci can stand for a lot of things and I think that's where they got a bit confused. It's the biggest Italian luxury brand and maybe they started to think that it was more of a heritage house than it should be,” Williams explains.
Williams outlines a protective strategy where the group is preemptively selling off valuable real estate. He cites the sale of luxury jewellery house Boucheron headquarters and flagship store on Place Vendôme, stating, "choosing to cash in on the fact that this building is worth a lot of money is a bit worrying that they feel the need to get that treasury right now."
Gucci’s potential for a rapid rebound hinges on securing the right creative leadership to tell a compelling story of the brand and leveraging its extensive assets. “I think real potential for the rebound is there if they can get the right person in place just to tell a very convincing fashion story. It can go very high, very fast again,” Williams says. “They have a lot of real estate, they have a lot of stores in great locations and they have a whole supply chain behind them that's really like rooting for their comeback because it's the biggest client for so many suppliers in the Italian fashion system.”

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Key Insights:

Gucci's downturn has been severe, with sales falling by almost a quarter in 2024. This dramatic slide highlights the challenge of reinvigorating the brand. “[Gucci] has had a few really big booms, but then also some pretty big busts afterward. That creates additional complications for the group and how much they're able to invest in acquiring new brands, in developing the brands they have. And honestly, to also just continue to exist,” says Williams.
Gucci’s identity has become muddled as it leans too heavily on its heritage, potentially limiting its appeal. “Gucci can stand for a lot of things and I think that's where they got a bit confused. It's the biggest Italian luxury brand and maybe they started to think that it was more of a heritage house than it should be,” Williams explains.
Williams outlines a protective strategy where the group is preemptively selling off valuable real estate. He cites the sale of luxury jewellery house Boucheron headquarters and flagship store on Place Vendôme, stating, "choosing to cash in on the fact that this building is worth a lot of money is a bit worrying that they feel the need to get that treasury right now."
Gucci’s potential for a rapid rebound hinges on securing the right creative leadership to tell a compelling story of the brand and leveraging its extensive assets. “I think real potential for the rebound is there if they can get the right person in place just to tell a very convincing fashion story. It can go very high, very fast again,” Williams says. “They have a lot of real estate, they have a lot of stores in great locations and they have a whole supply chain behind them that's really like rooting for their comeback because it's the biggest client for so many suppliers in the Italian fashion system.”

Additional Resources:

Hosted on Acast. See acast.com/privacy for more information.

Previous Episode

Es Devlin and Ekow Eshun on Belonging, Otherness and Identity

In an intimate conversation at BoF VOICES 2024, artist and stage designer Es Devlin and writer and cultural curator Ekow Eshun discuss the transformative potential of human connection.

Emerging from a desire to confront her own biases, Devlin’s “Congregation” project invited 50 Londoners from immigrant backgrounds to be drawn and displayed inside St. Mary le Strand church in London. Eshun’s new book, “The Strangers”, likewise interrogates racial identity and belonging through the stories of five Black men spanning centuries and continents.

“I'm not the same person at all,” says Devlin, reflecting on her experience. “I'm a bit more raw as a consequence of writing [The Strangers] because ... you have to open yourself up to pain and fraughtness,” adds Eshun.

Devlin and Eshun investigate how “otherness” shapes our sense of belonging and argue that true understanding requires a radical willingness to open ourselves to one another — and, in the process, rediscover parts of ourselves.

Key Insights:

For Devlin, bridging cultural divides begins with a fearless self-examination: “I wanted to encounter my own racism, my own bias, my own separation.” Considering how certain immigrants are welcomed while others are rejected, she admits, “If it's at work in my community, it must be at work in me. It must be work in my very person. Whether I think it is or not, I must encounter it.”
Creative inquiry can be a path to self-discovery. “Almost any creative exercise in the end becomes about one trying to meet what’s inside you," Eshun explains. "It's easy enough to say, 'We're all one interconnected species.' But to do that, you have to put in some work along the way. That work is self-revelatory, but it's also a work of active imagination and broad empathy."
For Eshun, genuine unity demands more than rhetoric—it requires a purposeful willingness to understand and embrace our differences. “It's easy enough to say, we're all one people, ... but to do that, you have to do some work along the way. That work is a self revelatory work, but it's also a work of active imagination. It's also a work of broad empathy. It's also a presumption of intimacy or connection, which I think is sometimes hard to get to.”

Additional Resources:

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Next Episode

Giles Duley Shares a New Lens on Purpose

Giles Duley began his photography career at an enviable pinnacle, shooting for GQ and Vogue and even touring with Oasis. Despite this early success, he found himself unfulfilled by the culture and sought a greater sense of purpose. Over time, his lens shifted from backstage glamour to the frontlines of conflict, where he began documenting the impact of war on ordinary lives. A life-altering moment came in Afghanistan when an IED explosion claimed three of his limbs, yet Duley returned to conflict zones with a renewed commitment to capturing stories of love and resilience.

“There is a connection from where I started to where I am now which is stories and empathy,” he says. “There’s the story, there’s the storyteller, and then there’s the amplifier. And what brands and individuals can do is be those amplifiers to make sure those stories are heard around the world. ... I've realised the way I live my best life is to make sure others are living their best life – and that is my purpose.”

Through his Legacy of War Foundation, Giles demonstrates how creativity and empathy can break down barriers, urging each of us to use our own platforms and talents to enact meaningful change.

Key Insights:

Duley documents conflict zones, but he views his work through a radically different lens: “I’m not a war photographer. I photograph love,” he says, highlighting ordinary moments that reveal our shared humanity: “a grandmother brushing her granddaughter’s hair, a mother feeding her baby, a father on the floor doing lessons with his kids.”
Though Duley lost three limbs after stepping on an IED in Afghanistan, he refused to let that trauma define his future. “The next day I woke up and I said, ‘I will never think about the things I can’t do, but I will focus on what I can and I will be the very best at that,’” he recalls, referring to the mantra that has guided him ever since. Duley went on to found an organisation that offers direct support to conflict-affected communities — underscoring his conviction that real change demands both bearing witness and taking action.
Duley has faced enormous challenges in conflict zones and through personal injury, but he insists that creativity can outlast even the harshest setbacks. “As creative people, even in ultimate lockdown, we cannot be stopped,” he says. “Trust me, there is no barrier that can stop you ... because creativity is greater than anything else.” This mindset, forged in dire circumstances, drives his commitment to show that imagination can break through the boundaries of physical limitations and societal constraints alike.
Duley dedicates himself to telling the stories of conflict-affected communities, yet he believes the real impact comes from those who amplify these narratives. “There’s the story, there’s the storyteller, and then there’s the amplifier. What brands and individuals can do is be those amplifiers to make sure those stories are heard around the world,” he says. As for his own driving force, Duley affirms, “The way I live my best life is to make sure others are living their best life. And that is my purpose.”

Additional Resources: