Demna Gvasalia takes over as Gucci's artistic director amid declining sales

In Italy, Gucci has appointed Demna Gvasalia, known simply as Demna, as its new artistic director, effective July 2025. This decision comes after the unexpected departure of Sabato De Sarno, who left the brand just 2.5 weeks before the Fall-Winter 2025-26 collection presentation during Milan Fashion Week. Gucci and its parent company, Kering, emphasized Demna's significant contributions to modern luxury while noting his long-standing relationship with Kering as the artistic director of Balenciaga for nearly a decade. His innovative approach earned him a global reputation, solidifying his role as a respected figure in the fashion industry. Demna's appointment marks a critical shift for Gucci, which has been struggling with declining sales, particularly in the Chinese market. The brand reported a staggering 24% drop in sales during the fourth quarter, raising alarms about its competitiveness in today’s fashion landscape. Industry analysts observed a broader trend contributing to Kering's woes, stating that Gucci's maximalist style had fallen out of favor, particularly as consumers gravitate toward the emerging trend of "quiet luxury." Kering’s chairman, François-Henri Pinault, expressed confidence in Demna's creative vision, suggesting it could rejuvenate Gucci and restore its market position. The announcement also led to an immediate impact on Kering's stock price, which saw an 11% decline following the news, marking the firm's largest drop since 2008. This reflects investor anxiety regarding Gucci's ability to revitalize its brand image and reinvigorate sales under Demna's direction. Analysts have pointed out that while Demna's innovative designs may take time to manifest on the Gucci runway, there is an urgent need for the brand to adapt swiftly to regain its appeal and drive consumer interest once more. The fashion industry will closely monitor how Demna integrates his unique vision into Gucci, particularly at the upcoming September Milan fashion show. Demna Gvasalia, a Georgian national, becomes the first non-Italian artistic director of Gucci since Tom Ford. This is significant as it symbolizes a diversification in Gucci's creative leadership, possibly bringing fresh perspectives to the storied Italian luxury house. As Demna prepares to take the helm of Gucci, the focus will be on balancing the heritage of the brand with innovative strategies that resonate with today's luxury consumers. By embracing the essence of modern luxury, Demna's leadership could be pivotal in steering Gucci back to a path of creative and financial success.