Gucci is undergoing a significant leadership change, addressing challenging times for the luxury brand.
- Stefano Cantino will take over as CEO of Gucci from 1 January 2025.
- He succeeds Jean-François Palus amid declining sales and profits.
- Palus had been navigating Gucci through economic downturns since July 2023.
- François-Henri Pinault praised Palus for his leadership during tough times.
Gucci’s strategic leadership shift marks a pivotal moment in its history as Stefano Cantino assumes the role of CEO on 1 January 2025, taking over from Jean-François Palus who has been at the helm since July 2023. Palus stepped into the CEO position during a period marked by financial challenges, with Gucci experiencing falling revenues and profits. Cantino, who joined Gucci in May 2024, brings experience from his previous roles in communications at luxury giants Louis Vuitton and Prada.
Under Palus’s leadership, Gucci faced significant economic hurdles, including a 17% decline in Kering’s full-year net profit by the end of 2023, dropping from €3.6bn (£3bn) to €2.98bn (£2.54bn). These challenges have persisted into 2024, where Gucci reported an 18% drop in sales year on year in the first half. In contrast, Kering’s other brands such as Saint Laurent and Bottega Veneta saw an 11% decrease across the board.
François-Henri Pinault, chairman and CEO of Kering, expressed gratitude for Palus’s strategic decision-making during this turbulent period, acknowledging his role in laying a foundation for future growth. Pinault stated, “I wholeheartedly thank Jean-François for his achievements at the helm of Gucci since summer 2023. Over a particularly challenging period, he made the courageous decisions the house needed, and built sound foundations for a renewed Gucci to flourish again under the stewardship of Stefano.”
Cantino’s appointment is seen as a forward-thinking move to rejuvenate Gucci’s brand and financial standing. His expertise in the luxury sector is anticipated to guide Gucci through its current challenges and into a period of revitalization. As deputy CEO, Cantino has been instrumental in navigating strategies alongside Palus, preparing for a seamless leadership transition.
This leadership change is expected to usher in a new era for Gucci, potentially reversing its financial decline.
