Kering SA named Stefano Cantino as chief executive officer of Gucci, entrusting a former LVMH executive to lead a turnaround at the French group’s biggest label.
Cantino, 57, joined Gucci in May as deputy CEO, and will assume the new role on Jan. 1, Kering said Tuesday. He replaces Jean-François Palus, who’d been appointed on a temporary basis last year.
The fashion industry veteran takes over at a time of weakness for the struggling Italian brand, which has suffered from cooling demand for high-end goods, particularly in China, following the pandemic-era boom years.
Shares of Kering rose nearly 1% in early trading Wednesday. The stock is down more than 40% this year.
Cantino previously spent five years at Louis Vuitton, LVMH’s biggest brand, where he oversaw communications and image. Before that, he worked for two decades at Prada SpA, rising to the position of director of communications and marketing. He will report to Kering co-deputy CEO Francesca Bellettini.
Gucci, which accounts for about two-thirds of Kering’s operating profit, named a new creative director, Sabato De Sarno, last year to revive the storied fashion brand.
His collections have brought a more minimalist aesthetic to the label known for its flamboyance under his predecessor, Alessandro Michele. While De Sabato has been at Gucci for less than two years, Cantino’s appointment may raise questions over his tenure, as fashion CEOs often seek out a preferred designer to translate their vision.
Palus, a long-time lieutenant of Kering CEO Francois-Henri Pinault, was brought in to oversee Gucci after the departure of Marco Bizzarri a year ago.
Cantino’s appointment is a positive for Gucci given the luxury label needs some external experience with a “more radical” approach for addressing its challenges, said Piral Dadhania, an analyst at RBC Capital Markets. However, he added that Cantino has “a lot of work to do” and questioned if new products from De Sarno are gaining traction.
The group, which also owns Yves Saint Laurent and Balenciaga, reports third-quarter revenue on Oct. 23.
