Gucci’s Alessandro Michele Is Leaving the Brand, and the Market Can’t Decide How It Feels

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The Italian fashion house confirmed rumors of the designer’s departure on Wednesday.

“There are times when paths part ways because of the different perspectives each one of us may have,” Michele said in a statement shared with Robb Report. “Today an extraordinary journey ends for me, lasting more than 20 years, within a company to which I have tirelessly dedicated all my love and creative passion. During this long period, Gucci has been my home, my adopted family.

Michele, a former accessories designer, started at Gucci in 2002 but was officially appointed to the top creative role in January 2015. Over the past seven years, he transformed the classic Italian label with his maximalist designs and avant-garde androgynous aesthetic. Alongside CEO Marco Bizzarri, Michele oversaw a period of unprecedented growth at Gucci. In 2021, it was named Kering’s most profitable brand, with revenue rising 31 percent year over year to $10 billion .

In recent quarters, however, Gucci’s popularity has started to wane. The label’s performance in the Chinese market, in particular, had become a source of concern for investors. “It’s a brand that was losing momentum, if they don’t put someone in charge quick it will lose even more momentum,” one source said.

Moreover, Kering shares are down by around 24 percent since the start of the year. For comparison’s sake, shares of its arch-rival LVMH have dropped just four percent. “After seven years in charge of Gucci’s creative engine, it may well be time for a change, and consensus amongst institutional investors appears to be forming that a new approach is required to reignite the brand,” RBC analysts told Reuters.Related Stories

 

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